Top Trade Ideas for the Week November 24, 2014: Bonus Idea

• Posted by Greg Harmon
• on November 24th, 2014

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

Celgene, Ticker: $CELG

Celgene, $CELG, broke above a two tiered consolidation range at the end of October and ran higher to 109. It has been consolidating under resistance there since Halloween with the Bollinger bands getting tight. This is often a precursor to a move. Should it be to the upside there is a target on a Measured Move to 128. The RSI supports a move higher, remaining in the bullish zone while the MACD is leveling after a pullback. There is resistance higher at 109.15 and then free air higher. Support lower may come at 103 and 95.85.

Trade Idea 1: Buy the Stock on a move over 109.15 with a stop at 106.

Trade Idea 2: Buy the December 110 Calls (offered at $2.39 late Friday).

Trade Idea 3: Buy the December 95/110 bullish Risk Reversal ($2.00).

Trade Idea 4: Buy the January 110/December 115 Call Diagonal ($3.25).

Trade Idea 5: Buy the January 110/December 115 Call Diagonal and sell the January 95 Put ($2.15).

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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 the shortened Thanksgiving Holiday week sees the equity markets looking solid longer term but a bit stretched in the short term. Elsewhere markets all are looking better to the upside. Look for Gold to continue the bounce higher while Crude Oil may join it as it is also biased to the upside short term. The US Dollar Index looks ready to resume its uptrend while US Treasuries round out of a short term pullback and continue up as well. The Shanghai Composite looks to continue its uptrend and Emerging Markets may also be reversing higher. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts continue to show divergence as the SPY and QQQ look higher in the intermediate term while the IWM continues sideways in a range. All three look at risk of a short term pullback this week, even if only Monday. 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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