Top Trade Ideas for the Week of February 24, 2014: Bonus Idea

• Posted by Greg Harmon
• on February 24th, 2014

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

FedEx, Ticker: $FDX

FedEx, $FDX, had a quick move higher in October and then consolidated in two ranges from mid November until mid January. As it fell back it found support on top of the Volume Hole and has been building an ascending triangle since. A move over resistance at the top of the triangle at 135.25 targets 141.50 on a Measured Move and using the centers of the two two box consolidations a possible extension to 156. The Relative Strength Index (RSI) is rising and crossed the mid line on the way back into the bullish zone and the MACD has crossed up and is rising. Both support further upward price action.

Trade Idea 1: Buy the stock on a move over 135.25 with a stop at 133.

Trade Idea 2: Buy the March 135 Calls (offered at $3.45 late Friday) on the same trigger.

Trade Idea 3: Buy the March 135/145 Call Spreads ($2.95) on the same trigger.

Trade Idea 4: Buy the March 135/March 14 Expiry 140 Call Diagonals ($2.70) on the same trigger.

Trade Idea 5: Buy the March/April 140 Call Calendars ($1.10) on the same trigger.

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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 last week of February sees the equity markets have recovered but need to make new highs to resume the path higher. Look for Gold and Crude Oil to continue higher next week. The US Dollar Index and US Treasuries look more neutral with the Dollar leaning lower. The Shanghai Composite may rest in the recent uptrend or even pullback while Emerging Markets look neutral in their short term uptrend. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts share an upward bias but more decidedly so in the IWM, possibly the next leader in the rotation, with the SPY and QQQ a bit more cautious and consolidating. Use this information as you prepare for the coming week and trad’em well.

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