Top Trade Ideas for the Week October 20, 2014: Bonus Idea

• Posted by Greg Harmon
• on October 20th, 2014

---

---

 

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

FedEx, Ticker: $FDX

FedEx, $FDX. is breaking a falling wedge higher after touching the 100 day SMA. The RSI held in the bullish range, not breaking below 40, and the MACD is now leveling after a pullback. Continuation higher would look for a move to 168 to complete a AB=CD pattern. There is resistance at 157 and 160 followed by 163.25 before free air higher. Support lower comes at 153 and 150 before 147.70 and 145.40. Short interest is low at 1%. The company does not report earnings again until mid December but UPS reports Friday before the open and may impact it.

Trade Idea 1: Buy the stock on a move over 157 with a stop at 153.

Trade Idea 2: Buy the October 24 Expiry 157.5 Calls (offered at $1.85 late Friday).

Trade Idea 3: Buy the November 157.5 Calls (expect about $3.85 as the Strike debuts Monday).

Trade Idea 4: Buy the November 157.5/October 31 Expiry 160 Call Diagonal (expect about $2.40).

Trade Idea 5: Buy the November 157.5/October 31 Expiry 160 Call Diagonal and sell the October 31 Expiry 150 Put (expect about $1.30).

Premium 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. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which, heading into the week, sees equities markets looking like they may have dodged a bullet, but still needing to confirm that with a move higher. Elsewhere look for Gold to consolidate with an upward bias while Crude Oil remains biased lower, but is showing a possible bottom. The US Dollar Index looks to consolidate or resume the uptrend while US Treasuries are showing signs of a possible reversal lower. The Shanghai Composite looks ready to resume the uptrend while Emerging Markets are showing signs of a possible reversal higher. Volatility looks to remain elevated and biased to stay there despite the spike and pullback, keeping the bias lower for the equity index ETF’s SPY, IWM and QQQ. There charts show signs of reversal higher with the IWM leading, but all need to prove they want to reverse with a move higher this week, otherwise the risk is to the downside. Use this information as you prepare for the coming week and trad’em well.

Dragonfly Capital Views Anniversary Celebration

For a limited time the Opportunity to join the Dragonfly Capital Views Premium Membership on an Annual basis is available for only $618. And every new Annual or converted subscription gets a free copy of my book.

This is nearly 20% off of the standard annual subscription price and over 40% off of a rolling monthly membership! Plus you get my book. Don’t miss this limited opportunity! Sign up here.

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