Top Trade Ideas for the Week of June 10, 2013: Bonus Idea

• Posted by Greg Harmon
• on June 10th, 2013

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

General Electric, Ticker: $GE

General Electric, $GE, is back at resistance at 23.90 after a pullback to 23.25. The pullback resembles a bull flag which gives a Measured Move higher to 26 on the break back higher. The Relative Strength Index (RSI) remained in bullish territory and is moving back higher now while the Moving Average Convergence Divergence (MACD) indicator is about to cross up. You have to go back to 2008 to find resistance to the upside around 26.25 and 30.50. Support lower comes at 23.25 and 22.80 followed by 22.50 and 21.33.

Trade Idea 1: Buy the stock on a move over 24 with a stop at 23.50.

Trade Idea 2: Buy the June 24 Calls (offered at 24 cents late Friday) and trade them like the stock trade.

Trade Idea 3: Buy the July 24 Calls (46 cents).

Trade Idea 4: Buy the July 22/24 bullish Risk Reversal (31 cents).

Trade Idea 5: Buy the August 24/26 Call Spread Risk Reversal selling the August 23 Put (3 cents)

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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 next week sees the markets looking to be in a better mood. Look for Gold to continue to consolidate or move lower while Crude Oil continues to rise. The US Dollar Index and US Treasuries are biased lower and looking ugly. The Shanghai Composite and Emerging Markets are biased to the downside as well. Volatility looks to remain subdued keeping the bias lower for the equity index ETF’s SPY, IWM and QQQ, and any move lower could trigger a strong equity buy signal. The Equity Index ETF’s themselves are poised to continue their trends higher with the QQQ the strongest followed by the IWM and then the SPY. 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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