Top Trade Ideas for the Week of July 21, 2014: Bonus Idea

• Posted by Greg Harmon
• on July 21st, 2014

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

Goldman Sachs, Ticker: $GS

Goldman Sachs, $GS, has a lot going on technically. It made what some would call a Cup and Handle pattern with a target of 188 and is testing the trigger range. It is also in the midst of a bearish Shark harmonic that carries a Potential Reversal Zone (PRZ) higher at 178.50. The RSI is rising and in the bullish range while the MACD has just crossed up, both supporting more upside.

Trade Idea 1: Buy the stock over 170.70 with a stop at 169.70.

Trade Idea 2: Buy the August 1 Expiry 172.50 Calls (Offered at $1.56 late Friday) on the same trigger.

Trade Idea 3: Buy the August 1 Expiry 172.5/177.50 call Spread ($1.31) on the same trigger.

Trade Idea 4: Buy the August 1 Expiry 172.5/177.5 Call Spread and Sell the August 1 Expiry 165 Puts (97 cents) on the same trigger.

Trade Idea 5: Buy the August 1 172.5/July 175 Call Diagonal ($1.29).

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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 Friday which, heading into next week sees the equity markets are again mixed. Elsewhere look for Gold to continue lower in its consolidation while Crude Oil continues lower. The US Dollar Index has a slight upward bias in the sideways price action while US Treasuries are biased to continue higher. The Shanghai Composite remains stuck in a sideways rut while Emerging Markets consolidating at resistance. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts show a mixed picture though, with the QQQ the strongest and looking for more upside, while the SPY consolidates in the uptrend and the IWM is biased lower in the short run within its consolidation. Use this information as you prepare for the coming week and trad’em well.

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