Top Trade Ideas for the Week of February 11, 2013: Bonus Idea

• Posted by Greg Harmon
• on February 11th, 2013

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

Citigroup, Ticker: $C

Citigroup, $C, has been consolidating in a tightening range since the move higher out of the bull flag in December and over resistance at 38.70. A move over the top at 43.40 carries a target on a Measured Move to 46.25 and then 52. The Relative Strength Index (RSI) is bullish and holding over the mid line but the Moving Average Convergence Divergence indicator (MACD) continues to pullback but has a shallowing angle to it. Support below is found at 41 and 39.60 followed by 38.70 and 37.50.

Trade Idea 1: Buy the stock on a move over 43.40 with a 75 cent trailing stop.

Trade Idea 2: Buy the February22 44 Calls (offered at 22 cents late Friday) on a move over 43.40.

Trade Idea 3: Buy the March15 44 Calls (73 cent) on a move over 43.40.

Trade Idea 4: Buy the February22/March15 45 Call Calendar (36 cents) on a move over 43.40.

Trade Idea 5: Buy the February22/March15 45 Call Calendar selling the March 38 Put (18 cents) on a move over 43.40.

Premium Content
The Best

The Rest Premium

Free Content
The Rest

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. This week’s list contains the first five below to get you started early. {+++}These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which heading into February Options Expiration week the bull market continues to chug along and get stronger from some perspectives. Gold looks to continue in its tightening range awaiting a break out while Crude Oil pulls back in the uptrend. The US Dollar Index is looking to test the upside of the broad range while US Treasuries are biased lower. The Shanghai Composite is biased to the upside in its consolidation while Emerging Markets are testing the limits of how long a bull flag can run before turning into a downtrend. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts agree with new 5 year highs for the SPY and all time highs for the IWM but most interesting a breakout of the range higher for the QQQ. It is unusual, but not unprecedented, for the Dollar Index to continue higher as Equities rise so keep an eye on that as your risk for a reversal. Use this information as you prepare for the coming week and trad’em well.

Join the Dragonfly Capital Views Premium Membership

These trade ideas are one piece of the Premium Service, which is complemented by weekly trend analysis, daily earnings plays and access for personalized analysis. Sign up here to get deeper analysis and nearly 50 trade ideas every week.

Dragonfly Capital Views Performance Through January 2013 Expiry

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