Top Trade Ideas for the Week of March 31, 2014: Bonus Idea

• Posted by Greg Harmon
• on March 31st, 2014

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

JP Morgan, Ticker: $JPM

JP Morgan, $JPM, continues to slowly creep higher, with set backs along the way. The pullback and Hammer reversal candle Thursday last week, confirmed higher Friday, creates a good short term trade opportunity. The dotted line has been short term resistance and now becomes support. The Relative Strength Index (RSI) has made a higher low, held bullish and the MACD is positive, both supporting more upside.

Trade Idea 1: Buy the Stock on a move over 60.50 with a stop at 59.50.

Trade Idea 2: Buy the April 60 Calls (offered at $1.05 late Friday).

Trade Idea 3: Buy the April 60/April 11 weekly 60.50 Call Diagonal (37 cents).

Trade Idea 4: Buy the May 60/April 11 weekly 61 Call Diagonal ($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 Friday which, as the calendar prepares to turn into April sees the equity markets looking weak. Elsewhere look for Gold to continue lower while Crude Oil continues to move higher. The US Dollar Index looks better to the upside as do US Treasuries, but both with big resistance areas nearby. The Shanghai Composite looks back to its downward price action and but Emerging Markets are biased to the upside with some caution after a big week with short term topping signs. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ, despite the moves lower. Their charts are not so optimistic though with the IWM and QQQ in pullbacks that look to continue while the SPY tries to hold on in consolidation. 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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