Top Trade Ideas for the Week of July 8, 2013: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Cerner, Ticker: $CERN

Cerner, $CERN, is testing the top of a channel between 47 and 50. It moved to the top Friday on a candle that closed at the high of the day. The Relative Strength Index (RSI) is rising and in bullish territory with a Moving Average Convergence Divergence indicator (MACD) that is just starting to cross positive as it rises. These support further upside price action. There is an initial Measured Move (MM) to 53 out of the channel. Support under 47 comes at 45.40 and 44.20.

Trade Idea 1: Buy the stock on a move over 50 with a $1 trailing stop.

Trade Idea 2: Buy the July 50 Calls (offered at 85 cents late Friday) on the same trigger.

Trade Idea 3: Buy the July 50/52.5 Call Spreads (75 cents) on the same trigger.

Trade Idea 4: Buy the August 47.5/50 bullish Risk Reversal (95 cents) on the same trigger.

Trade Idea 5: Buy the August 50/55 Call Spread Risk Reversal selling the August 47.5 Put (60 cents) on the same trigger.

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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, heading into the first full week of July sees the markets improving and possibly ready to move higher again. Look for Gold to continue its downward move or consolidate in a broad range while Crude Oil continues higher. The US Dollar Index also looks to continue to the upside while US Treasuries resume their move lower. The Shanghai Composite may continue its bounce in its downtrend, but the Emerging Markets are biased to the downside. Volatility looks to remain low and drifting lower keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts show that the IWM is the strongest and ready to continue higher while the SPY and QQQ still have some resistance to work through in their short term moves higher before they are in the clear to move higher. 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.

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