Top Trade Ideas for the Week of December 23, 2013: Bonus Idea

• Posted by Greg Harmon
• on December 23rd, 2013

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

Boeing, Ticker: $BA

Boeing, $BA, has been flying high all year in the face of budget cuts, sequester, and government shutdown. Since early November it has been consolidating over 131.25 support with a tightening range as resistance comes from a falling trend line. Since September it has shown moves of about $17 out of consolidation phases and another one would target 153 to the upside on a break of the triangle forming. There is resistance at 138 and 142 with nothing but blue sky above. Support lower is found at 131.25 and 122.60 followed by 120 and 114.10 before 109.50. Price has support for more upside action from a rising and bullish Relative Strength Index (RSI) and a MACD that is turning up and about to cross.

Trade Idea 1: Buy the stock on a move over 138 with a stop at 135.

Trade Idea 2: Buy the January 135 Calls (offered at $4.15 late Friday) on the same trigger.

Trade Idea 3: Buy the January 3 Expiry 138 Calls ($1.39) on the same trigger.

Trade Idea 4: Buy the January 135/January 10 Expiry 140 Call Diagonal ($3.00, buy Jan 135, sell Jan 10 140)) on the same trigger.

Trade Idea 5: Buy a January 3 Expiry/January 140 Call Calendar (95 cents).

Trade Idea 6: Buy a January/February 140 Call Calendar ($$1.85).

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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 Christmas Holiday week, sees the markets have regained some strength. This week look for Gold to continue lower while Crude Oil keeps moving higher. The US Dollar Index is looking better to the upside while US Treasuries are biased lower but in consolidation. The Shanghai Composite and Emerging Markets are biased to the downside with risk of the Chinese market turning very ugly. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their individual charts suggest more upside with the IWM looking strongest, followed by the SPY. The QQQ has a strong trend but remains a bit extended. 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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