4 Trade Ideas for GE Aerospace: Bonus Idea

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

GE Aerospace, $GE, comes into the week pushing over resistance. Price has been riding the upper of the Bollinger Bands® as it has moved higher. It has an RSI rising in the bullish zone with the MACD positive and climbing. There is resistance at 326.50 and 329.50 before 338 and 346.50. Support lower is that 317 and 308.50. Short interest is low at 1.4%.  The stock pays dividend with an annual yield of just 0.58% and has traded ex-dividend since March 9th.

The company is expected to report earnings on July 16th. The June call chain has biggest open interest at the 300 strike on the put side and then at 310. On the call side it is biggest at 320 and then 350. In the July chain open interest is spread from 290 down to 240 on the put side and is focused at 300 on the call side but also big at 320 and 340. Finally, in the August chain open interest is just getting started and is very low on the put side. On the call side it has accumulated some size at both the 320 and 390 strikes.

GE Aerospace, Ticker: $GE

Trade Idea 1: Buy the stock on a move over 326 with a stop at 315.

Trade Idea 2: Buy the stock on a move over 326 and add a June 315/300 Put Spread ($5.55) while also selling the July 360 Call ($5.75).

Trade Idea 3: Buy the June/July 350 Call Calendar ($7.08) while also selling the July 290 Puts ($5.60).

Trade Idea 4: Buy the August 290/330/360 Call Spread Risk Reversal ($3.10).

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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 with the month of May in the books and heading into a non-farm payroll week, saw equities continue to show strength, printing more new all-time highs.

Elsewhere, look for Gold to continue walking the fence between a downtrend and digestion in the uptrend while Crude Oil bounces around in tightening consolidation around $100/bbl but near a change of character to a downtrend. The US Dollar Index looks to continue to drift higher in broad consolidation while US Treasuries continue to test support in consolidation after avoiding a shift in character. The Shanghai Composite looks to continue digestion in the short term uptrend while Emerging Markets make new highs in their uptrend.

The Volatility Index looks to continue lower in the normal zone, giving a tailwind to equities. The charts of the SPY, the QQQ and the IWM continue to look extremely strong on the longer timeframe with a 9th positive week for the SPY. On the shorter timeframe the SPY, the QQQ and the IWM also look very strong, with all printing all-time highs to start the week and then again Thursday. The SPY and QQQ ended with a 3rd record while the IWM was just short of joining them. Use this information as you prepare for the coming week and trad’em well.

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