4 Trade Ideas for Hyatt: Bonus Idea

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

Hyatt, $H, was moving mainly sideways in consolidation until it lifted off in November. it continued higher to a top at the end of December and then pulled back. It retested that top in February and then gapped down. Shortly after it confirmed a Double Top and started moving lower. It broke below the prior support in early March and then accelerated to a low on Wednesday. That day it printed a Hammer candlestick, a possible reversal, and it confirmed to the upside Thursday and followed through on Friday.

The RSI has turned up and is moving out of oversold territory with the MACD leveling at an extreme low. There is resistance higher at 51.35 and 56.65 then 60.65 and 69.40. Support lower comes at 40.60 and 35. Short interest is elevated at 7.2%. The stock pays a dividend with a 1.71% annual yield, and began trading ex-dividend on February 25th. The company is expected to report earnings next on April 29th.

The April options chain shows open interest spread from 25 to 75 on the put side and much smaller on the call side. The May chain shows open interest focused from 60 to 70 and then also at 25 and 30 on the put side. It is biggest from 75 to 80 and then at 100 on the call side.

Hyatt, Ticker: $H

Trade Idea 1: Buy the stock on a move over 50 with a stop at 48.

Trade Idea 2: Buy the stock on a move over 50 and add an April 50/40 Put Spread ($5.00) while selling the May 65 Call ($3.50).

Trade Idea 3: Buy the April/May 60 Call Calendar ($3.00) and sell the April 25 Put ($2.00).

Trade Idea 4: Buy the April 55/60 Call Spread $3.20) and sell the April 25 Put ($2.00).

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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 calendar turning to spring saw anything but a refreshing new start in the markets with the worst week for equity markets since 2008.

Elsewhere look for Gold to continue its pullback while Crude Oil drops possibly into the teens. The US Dollar Index continues to shine as it moves to the upside while US Treasuries pause in their uptrend. The Shanghai Composite looks to possibly reverse the downtrend while Emerging Markets continue to move lower.

The Volatility Index looks to remain extreme, keeping the boot on the throat of the equity index ETF’s. Their charts are broken on both the daily and weekly timeframe. On the shorter timeframe the IWM showed some stability in the short run while the SPY looks the weakest. The longer timeframe shows the QQQ the strongest of a weak bunch that is hemorrhaging. 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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