4 Trade Ideas for Fedex: Bonus Idea

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

Fedex, $FDX, comes into the week at resistance. It has a RSI in the bullish zone and rising with the MACD flat and positive. There is resistance at 270 and 276.50 then 281.50 and 287.50 before 293.50 and 298.50. Support lower is at 263.50 and 260. Short interest is low at 1.9%. The stock pays a dividend with an annual yield of 2.15% and will trade ex-dividend on December 15th.

The company is expected to report earnings next on December 18th. The December options chain shows the biggest open interest at the 230 then 240 and 220 put strikes and at the 270 strike on the call side. The January chain is biggest at 220 and 230 on the put side and at 300 on the call side. Finally, the March chain has biggest open interest at the 210 put and the 250 call strikes.

Fedex, Ticker: $FDX

Trade Idea 1: Buy the stock on a move over 270 with a stop at 260.

Trade Idea 2: Buy the stock on a move over 270 and add a December 260/250 Put Spread ($3.90) while selling a January 310 Call ($2.65).

Trade Idea 3: Buy the December/January 300 Call Calendar ($2.25) while selling the December 240 Put ($2.80).

Trade Idea 4: Buy the March 240/280/310 Call Spread Risk Reversal ($1.65).

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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 November options expiration in the rearview mirror, saw equity markets showed continued jitters, with mixed messaging from the Fed and the first Government data, the September jobs report.

Elsewhere, look for Gold to continue the uptrend with some short term consolidation while Crude Oil holds lower in consolidation. The US Dollar Index continues the short term drift to the upside, toward a breakout, while US Treasuries continue in consolidation, sputtering the possible reversal higher. The Shanghai Composite looks to continue the uptrend after some digestion from the 10 year highs while Emerging Markets stall in their uptrend putting it at risk.

The Volatility Index looks to continue to move up into elevated territory further stalling the equity moves higher and setting them back. The charts of the SPY, the IWM and the QQQ remain strong on the longer timeframe but with some risk of a correction. On the shorter timeframe the SPY and QQQ have reset from the all-time highs to the 100 day SMA and remain at risk for further downside, while the IWM looks most vulnerable to more downside, sitting on support. 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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