Top Trade Ideas for the Week of July 1, 2013: Bonus Idea

• Posted by Greg Harmon
• on July 1st, 2013

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

Visa, Ticker: $V

Visa, V, has been consolidating between 177 and 185 since jumping there at the beginning of May. Touching the top of the resistance channel Friday after testing the rising 50 day Simple Moving Average (SMA) to start last week, it initially rejected. But the Relative Strength Index is in bullish territory and the Moving Average Convergence Divergence indicator (MACD) is trying to cross up. There is no resistance higher but support lower under 177 is found at 170 and 164.20 before 162.

Trade Idea 1: Buy the stock on a move over 185 with a stop at 182.
Trade Idea 2: Buy the July 185 Calls (offered at $2.37 late Friday) on a break over 185.
Trade Idea 3: Buy the July 170/185 bullish Risk Reversal ($1.83) on a break over 185.
Trade Idea 4: Buy the July/August 190 Call Calendar ($2.20) on a break over 185.
Trade Idea 5: Buy the July/August 190 Call Calendar and sell the August 170 Put (free) on a move over 185.

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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 Saturday which, heading into the Holiday shortened week sees the Equity markets look tired in their bounce. Look for Gold to consolidate or bounce in its downtrend while Crude Oil is biased higher in the consolidation. The US Dollar Index looks strong and ready to continue higher while US Treasuries may continue their bounce in the downtrend. The Shanghai Composite and Emerging Markets both look to bounce in their downtrends. Volatility looks to remain subdued but drifting higher keeping the bias lower for the equity index ETF’s SPY, IWM and QQQ. Their charts all look to be tired in upward move within their intermediate downtrends in the long term uptrend. Use this information as you prepare for the coming week and trad’em well.

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