Top Trade Ideas for the Week of March 26, 2012: Bonus Idea

• Posted by Greg Harmon
• on March 26th, 2012

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

Amazon.com, Ticker: $AMZN

Amazon.com, $AMZN, is moving higher to resistance at 197.20, with a rising Relative Strength Index (RSI) and a Moving Average Convergence Divergence (MACD) indicator that is positive and increasing supporting more upside. Through resistance there is further resistance at 204.60 and 211 followed by 220. I look for 1 month to get there. Above 220 the gap to 225 and then 240 or 246.70 could stop it perhaps another month later. Support lower comes at 188 and 182 followed by 177 and 174. This chart looks ready to run higher.

Trade Idea 1: Buy the stock on a move over 197.20 with a $3 trailing stop.

Trade Idea 2: Buy the April 200 Calls on a move over 197.20.
These were traded last at $3.90.

Trade Idea 3: Buy the April 200/210 Call Spread on move over 197.20.
This traded last at $2.46.

Trade Idea 4: Buy the April 200/210 Call Spread Risk Reversal selling the April 175 Put on move over 197.20.
This traded last at $1.52.

Trade Idea 5: Buy the May 200 Calls on a move over 197.20.
These were traded at $8.50 last.

Trade Idea 6: Buy the May 200/220 Call Spread on move over 197.20.
This traded last at $5.74.

Trade Idea 7: Buy the May 200/220 Call Spread Risk Reversal selling the 175 Put on move over 197.20.
This traded last at $2.00.

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After reviewing over 900 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 as the last week of the first quarter of 2012 comes around suggests beware of window dressing buying potential in hot names. As for Gold it looks back to its old confusion, looking sideways in the intermediate term downtrend in the long term uptrend while Crude Oil consolidates in the 104.81-110 range with a bias higher. Both the US Dollar Index and US Treasuries are biased to the downside in the intermediate term but Treasuries may continue to rally short term. The Shanghai Composite looks to continue lower while Emerging Markets are at support and losing that will follow lower. The Volatility Index still has a harder road to move in the bias direction lower but shows no signs of rising anytime soon. These influencers create a backdrop for the US Equity Index ETF’s SPY, IWM and QQQ to continue to consolidate with in their bullish trends. Their charts tend to agree but this week the SPY and QQQ show signs that the pullback may continue. Use this information as you prepare for the coming week and trade’m 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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