Top Trade Ideas for the Week of May 13, 2013: Bonus Idea
- Posted by Greg Harmon
- on May 13th, 2013
Here is your Bonus Idea with links to the full Top Ten:
Amgen, Ticker: $AMGN
Amgen, $AMGN, pulled back from a touch at 115 and found support back at the 103.90 level. There is support lower at 94.20 and 90.30 before the previous channel at 83 to 89.40. The Relative Strength Index (RSI) is holding in bullish territory through the pullback and the MACD is starting to level after a big drop. Maybe it is time for a turn back higher. A move over the top of the descending triangle at 107 carries a target to 115.60 with resistance at 110 and 112.50 along the way.
Trade Idea 1: Buy the stock on a move over 107 with a stop at 103.75.
Trade Idea 2: Buy the June 110 Calls (offered at $1.72 late Friday) on the same trigger.
Trade Idea 3: Buy the 105/115 Call Spreads ($3.27) on the same trigger.
Trade Idea 4: Sell the June 100 Puts ($1.03) on a move over 107.
Trade Idea 5: Buy the 105/115 Call Spreads selling the June 100 Puts ($2.24) on a move over 107.
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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which, as we head into the options expiration week for May sees the equity markets remaining strong. Look for Gold to continue its correction while Crude Oil may consolidate with an upside bias. The US Dollar Index seems content to move sideways but now with a upward bias as US Treasuries move lower in the broad consolidation zone. The Shanghai Composite is building towards a break of consolidation higher while Emerging Markets look to pullback in their uptrend. Volatility looks to remain subdued keeping the wind at the backs of the equity index ETF’s SPY, IWM and QQQ, despite their moves to new highs. Their charts agree with a continued upward bias but with the IWM the strongest on the short term basis and the QQQ strongest on the intermediate term. Rotation into small caps may result. Use this information as you prepare for the coming week and trad’em well.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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