4 Trade Ideas for Intercontinental Exchange: Bonus Idea

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

Intercontinental Exchange, $ICE, was cruising along in a sideways consolidation coming into the end of 2019. It started to move higher in January but then took a hard fall at the start of February. This marked a period of about 5 weeks of uncertainty and a wide range of trading. Into March that resolved with a steep drop to a low in the middle of the month. It quickly rebounded and then slowed as it came up to the prior consolidation level. After a minor overshoot it has now fallen back to the consolidation range and at the 200 day SMA.

The RSI is tuning back higher at the mid line with the MACD dropping but positive. Price is at the lower of the Bollinger Bands® which could help support it. But it is also below the 20 day SMA, generally not a bullish scenario. There is support at 91 and 89 then 87.75 and 85 before 82.75. Resistance above comes at 95.50 and 96.75 then 98 and 100.50. The stock pays a dividend with an annual yield of 1.29% and starts the week trading ex-dividend Monday. The company is expected to report earnings next on July 30th.

The June options chain shows open interest spread from 80 to 95 on the put side, with a more focused and larger spread from 90 to 105 on the call side. July options show open interest build from 80 to a peak at 95 on the put side, while the call side shows a build from 90 to a peak at 100. The September options are the first to cover the earnings report, and they show small open interest from 90 to 95 on the put side. The call side is bigger and spread from 87.50 to 110.

Intercontinental Exchange, Ticker: $ICE

Trade Idea 1: Buy the stock on a move over 95 with a stop at 92.

Trade Idea 2: Buy the stock on a move over 95 and add a July 92.50/90 Put Spread ($1.95) while selling a September 100 Call ($2.40).

Trade Idea 3: Buy the July 90 Puts ($2.80) on a move under 92.

Trade Idea 4: Sell the July/September 90 Put Calendar ($3.15 credit) on a move under 92.

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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 June options expiration week, sees equity markets showed some weakness with their turn lower at the end of the week following the FOMC meeting.

Elsewhere look for Gold to consolidate in its uptrend while Crude Oil pauses in its move higher. The US Dollar Index looks to be ready to reverse to the upside while US Treasuries also may be reversing higher. The Shanghai Composite looks to continue to mark time moving sideways while Emerging Markets consolidate in their uptrend.

The Volatility Index looks to be reversing higher making the path harder for equity markets to the upside. Their charts look to have been punched in the face, especially on the shorter timeframe. All are holding over the 20 day SMA for now, so no major damage, but time to take notice. On the longer timeframe the long red bearish engulfing candles for both the IWM and SPY show some damage. The QQQ remains the strongest but with a potential reversal candle itself too. Use this information as you prepare for the coming week and trad’em 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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