Top Trade Ideas for the Week of April 9, 2012: Bonus Idea

• Posted by Greg Harmon
• on April 9th, 2012

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

Dillards, Ticker: $DDS

Dillards, $DDS, has been consolidating after a strong move higher from 49 in February in a bull flag topping at 64 and with a lower limit of 62. It has a bullish Relative Strength Index (RSI) and a Moving Average Convergence Divergence (MACD) indicator that is negative but improving. Both would support a move higher. There is no over head resistance on a breakout but it would create a target on a Measured Move to 78. Short interest is very high in this name at over 15%, and could facilitate a short squeeze. Support is found lower at 60 and 55.50 followed by 52.70.

Trade Idea 1: Buy the stock on a move over 64.20 with a $1 trailing stop.

Trade Idea 2: Buy the May 65 Calls on the same 64.20 trigger.
These were offered at 2.50 late Thursday.

Trade Idea 3: Sell the May 60 Puts on the same 64.20 trigger.
These were bid at 1.70 late Thursday.

Trade Idea 4: Buy the May 65/60 bullish Risk Reversal on the same 64.20 trigger.
These were offered at 80 cents late Thursday.

Trade Idea 5: Sell the May 60/55 Put Spreads on the same 64.20 trigger.
These were bid at 1.00 late Thursday.

Trade Idea 6: Buy the May 65 Calls selling the May 60/55 Put Spreads on the same 64.20 trigger.
These were offered at 1.50 late Thursday.

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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 sees many markets looking better to the downside. Gold and Crude Oil look to continue their recent trends lower. The US Dollar looks strong and ready to continue higher while Treasuries are better to the upside in the short run in their downtrend. The Shanghai Composite may continue the bounce in the downtrend while Emerging Markets continue to consolidate. The Volatility Index looks ready to finally start the rise off the bottom. These influencers paint as picture that gives a downward bias to the US Equity ETF’s. The chart of the SPY agrees and looks to continue lower while the IWM and QQQ may follow or just consolidate. 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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