Top Trade Ideas for the Week of April 7, 2014: Bonus Idea

• Posted by Greg Harmon
• on April 7th, 2014

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

Apple, Ticker: $AAPL

Apple, $AAPL, has a lot going on. First notice that all of the Simple Moving Averages (SMA) are running flat and the Bollinger bands are getting tight. These are signs of a move to happen soon. The tighter ascending triangle (red) is being tested at support with a target to 500 on a break lower. That would be below the support of the large scale (blue) symmetrical triangle that has touched 4 times and is moving to the 5th at the bottom. A break of that targets 390. Whoa. The Relative Strength Index (RSI) is moving lower to test the bearish zone under 40 and the MACD has crossed down, both supporting the downside. There is support lower at 524.50 and 514 followed by 495 and 477 before 447. Resistance higher comes at 543 and 547.50 followed by 560 and 572.

Bearish Trade Ideas
Trade Idea 1: Sell the stock short on a move under 529 with a stop at 540.

Trade Idea 2: Buy the April 530 Puts (offered at $6.85) on the same trigger.

Trade Idea 3: Buy the May 530/500 Put Spread ($11.65) on the same trigger.

Trade Idea 4: Buy the April/May 510 Put Calendar ($8.35) on the same trigger.

Trade Idea 5: Buy the May 9 Expiry 520/April 25 Expiry 510 Put Diagonal ($6.80) on the same trigger.

Bullish Trade Ideas
Trade Idea 6: Buy the stock on a move over 548 with a stop at 538.

Trade Idea 7: Buy the April 545 Calls ($2.82) on the same trigger.

Trade Idea 8: Buy the May 545/575 Call Spread ($7.95) on the same trigger.

Trade Idea 9: Buy the April/May 555 Call Calendar ($6.75) on the same trigger.

Trade Idea 10: Buy the May 9 Expiry 550/April 25 Expiry 560 Call Diagonal ($4.75) on the same trigger.

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After reviewing over 1,000 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early. {+++}These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which, moving into next week sees the equity markets continuing to look weak. Elsewhere look for Gold to move higher with Crude Oil in the short term. The US Dollar Index and US Treasuries are also biased to the upside with a chance that treasuries just churn their wheels sideways. The Shanghai Composite is poised to consolidate in the downtrend while Emerging Markets are biased to the downside in the short run after a strong move higher. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ, despite the moves lower last week. Their charts do not share the upside optimism in the short run with the SPY the strongest pulling back near support, the IWM next at support but weak and the QQQ looking lower in the short run. The longer view is similar with the SPY the strongest and consolidating while the IWM is at support and the QQQ moving lower. Use this information as you prepare for the coming week and trad’em well.

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