Top Trade Ideas for the Week of October 14, 2013: Bonus Idea

• Posted by Greg Harmon
• on October 14th, 2013

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

Express Scripts, Ticker: $ESRX

Express Scripts, $ESRX, rose out of a consolidation box only to fall back into that same zone and consolidate further. With the Marubozu candle Friday it is now pressing against the top with a Relative Strength Index (RSI) that is rising and through the mid line and a MACD that is turning higher and crossed up. These support more upside. There is resistance higher at the top of the box at 63.15 and then 63.65 followed by 65 and 66.50 before the previous high at 67.66. Support lower comes at 61.90 and 60.80 followed by 59.70 and 58.40, with a Measured Move lower to 57.50.

Trade Idea 1: Enter long on a move over 63.40 with a stop at 62.40.

Trade Idea 2: Buy the November 62.5 Calls (offered at $2.19 late Friday) on the same trigger.

Trade Idea 3: Buy the November 62.5/67.5 Call Spread ($1.77) on the same trigger.

Trade Idea 4: Buy the October/November 65 Call Calendar ($90 cents).

Trade Idea 5: Buy the November 62.5/65 Call Spread and sell the October 65 Call ($1.00).

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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 Saturday which, moving into the October Options Expiration week, looks for Gold and Crude Oil to continue to move lower. The US Dollar Index looks to continue higher in the down trend while US Treasuries consolidate but are biased lower. The Shanghai Composite and Emerging Markets are both biased to the upside in the short term. Volatility looks to remain low and falling again keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts also look higher with the IWM and QQQ near their highs but the SPY needing a little more to get there. Use this information as you prepare for the coming week and trad’em well.

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