Top Trade Ideas for the Week of March 3, 2014: Bonus Idea
- Posted by Greg Harmon
- on March 3rd, 2014
Here is your Bonus Idea with links to the full Top Ten:
Express Scripts, Ticker: $ESRX
Express Scripts, $ESRX, made a false breakout of a channel 2 weeks ago and then fell back. Now it is trying to break out higher again. The Measured Move higher targets 79.25 and that is reinforced as there is a Positive RSI Reversal in the chart targeting there as well. The Lower low in the Relative Strength Index (RSI) combined with the higher low in the price creates the Positive Reversal. That RSI running higher supports the upside and the MACD is flat, no longer falling. Resistance higher stands at 75.40 and 78.17 with support below at 73.75 and 72.75 before 70.
Trade Idea 1: Buy the stock on a move over 75.50 with a stop at 74.50.
Trade Idea 2: Buy the March 75 Calls (offered at $1.42 late Friday) and trade them like the stock trade (using the stock price as a trigger, stop and target).
Trade Idea 3: Buy the April 75/March 77.5 Call Diagonal ($1.81, buy April and sell March).
Trade Idea 4: Buy the March/April 77.50 Call Calendar (69 cents, buy April and sell March).
Trade Idea 5: Buy the April 72.5/77.50 bullish Risk Reversal (17 cents, buy the 77.50 Call and sell the 72.50 Put).
If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits feed and on chartly.
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 Friday which, turning the page of the calendar into March sees the equity markets again looking strong. Elsewhere look for Gold to consolidate or pullback in its uptrend while Crude Oil consolidates with an upward bias. The US Dollar Index looks in trouble and moving lower while US Treasuries are biased higher. The Shanghai Composite may get a short term bounce and Emerging Markets look to continue sideways with an upward bias. Volatility looks to remain low keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts also look higher with the SPY and IWM stronger than the QQQ. Use this information as you prepare for the coming week and trad’em well.
Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades from Amazon.
Dragonfly Capital Views Book Launch Celebration
For a limited time the Opportunity to join the Dragonfly Capital Views Premium Membership on an Annual basis is available for only $618.
This special Fibonacci rate (1000 divided by Φ) will be around for a limited time. Don’t miss this opportunity to join or upgrade! Sign up here.
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through February 2014 Expiry and sign up here for the free 7 day trial before you pay.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
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)
- The Longer Outlook in ….. The Euro
- Stella, Hey Stella, Grab Me a Stella Artois
- Premium Earnings 1-29-15
- The Longer Outlook in ….. Gold
- Papa John’s Is Prepping for a Super Bowl Break Out
- Premium Earnings 1-28-15
- The Longer Outlook in ….. Crude Oil
- Breaking Diamonds
- Premium Earnings 1-27-15
- The Longer Outlook in ….. The German DAX