4 Trade Ideas for BlackRock: Bonus Idea

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

BlackRock, $BLK, comes into the week pushing against resistance and the 50 day SMA. This is after bouncing from a 38.2% pullback of the last run higher. The Bollinger Bands® are neutral, running sideways. The RSI is rising through the midline with the MACD crossed but and rising but negative. There is resistance at 1020 and 1040 then 1055 and 1068 before 1083.50. Support lower sits at 1004 and 992. Short interest is low under 1%. The stock pays a dividend with an annual yield of 2.0% and has traded ex-dividend since December 5th.

The company is expected to report earnings next on April 14th. The February options chain shows open interest scattered but biggest at 1000 on the put side as well as the call side. The March chain is a little heavier with biggest open interest at 1000 and 970 on the put side and at 1080 on the call side. Finally, the April chain, covering the earnings report, is just getting started but shows an expected move of about $80 between now and expiry.

BlackRock, Ticker: $BLK

Trade Idea 1: Buy the stock on a move over 1025 with a stop at 965.

Trade Idea 2: Buy the stock on a move over 1025 and add a February 1000/960 Put Spread ($8.70) while selling the March 1090 Calls ($7.60).

Trade Idea 3: Buy the February/March 1070 Call Calendar ($8.20) while selling the March 950 Put ($8.10).

Trade Idea 4: Buy the April 950/1040/1080 Call Spread Risk Reversal ($2.20).

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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 January FOMC meeting, saw equity markets showing strength with a 4 day trend higher before some profit taking Friday.

Elsewhere look for Gold to continue its push to a new high while Crude Oil pulls back in consolidation. The US Dollar Index looks to have stalled in its move to the upside while US Treasuries resume their downtrend. The Shanghai Composite looks to continue chop in consolidation while Emerging Markets continue the short term downtrend.

The Volatility Index looks to remain low and stable making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe. On the shorter timeframe the SPY, the QQQ and the IWM are all reversing out of the pullbacks started in December with the SPY the first to print a new all-time high. The QQQ is less than 2% away from its prior top with the IWM still over 5% below its all-time high. Use this information as you prepare for the coming week and trad’em well.

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.

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