Top Trade Ideas for the Week of February 13, 2012: Bonus Idea

• Posted by Greg Harmon
• on February 13th, 2012

Here is your Bonus Idea (actually 10 ideas) with links to the full Top Ten:

Intuitive Surgical, Ticker: $ISRG

Intuitive Surgical, $ISRG, is flying a tight bull flag, bounded by 485 and 495, after a move higher. The Simple Moving Averages (SMA) are all sloping higher with a Relative Strength Index (RSI) that is bullish and a Moving Average Convergence Divergence (MACD) indicator that is positive but fading, as it does in many bull flags. These all support further upside. A break of the flag higher is into uncharted territory and triggers a Measured Move to 525. Support can be found lower at 475 and 460 followed by 450, 436 and 425 before the top of the gap at 413.

Bullish Trades, on a break over 495:

Trade Idea 1: Buy the stock using a $10 trailing stop and take off 1/3 at 525.

Trade Idea 2: Buy the March 500 Calls for $13.80 and trade them like they were the stock.

Trade Idea 3: Buy the March 500/525 Call Spreads for $8.20.

Trade Idea 4: Sell the March 455 Puts for $4.00.

Trade Idea 5: Buy the March 500/525 Call Spread Risk Reversal selling the March 455 Puts for $4.20

Bearish Trades, on a break below 485:

Trade Idea 1: Sell the stock using a $10 trailing stop and take off 1/3 at 460.

Trade Idea 2: Buy the March 480 Puts for $11.00 and trade them like they were the stock.

Trade Idea 3: Buy the March 480/450 Put Spreads for $7.70.

Trade Idea 4: Sell the March 500/510 Call Spreads for $3.00.

Trade Idea 5: Buy the March 480/450 Put Spread Risk Reversal selling the March 500/510 Call Spreads for $4.70.

The Best

The Rest Premium

The Rest

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After reviewing over 900 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 Saturday which heading into next week finds Gold looking complicated consolidating in the intermediate term downtrend in the long term uptrend while Crude Oil looks to continue to move sideways in the broad range. US Treasuries are poised to move lower if they break their consolidation while the US Dollar Index is trying to break the downtrend higher. The Shanghai Composite and Emerging Markets are ready for more upside. Volatility seems to have bottomed and may move higher. These influencers create a mixed backdrop for the Equity Index ETF’s SPY, IWM and QQQ with Treasuries supporting the uptrend and the Dollar Index threatening it. A sharp move higher by the Shanghai Composite could break the tie to the upside. The ETF’s themselves reflect the mixed mood with the SPY and QQQ looking strong while the IWM is pulling back. All three are susceptible for a pullback, just the IWM is the weakest. Use this information as you prepare for the coming week and trade’m 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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