Top Trade Ideas for the Week of June 23, 2014: Bonus Idea

• Posted by Greg Harmon
• on June 23rd, 2014

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

JP Morgan, Ticker: $JPM

JP Morgan, $JPM, has been rising off of a double bottom at 53. The last two weeks it has consolidated under 58 and above the 100 day SMA. The RSI is in the bullish range and the MACD is leveling after a rise, but looks to be avoiding a cross down. A break of consolidation to the upside has a short term target of 59.50 and resistance there and at 61.25. There may be support lower at 56.70 and below that at 56.25 and 55 before a return to the 53 floor.

Trade Idea 1: Enter long on a move over 58 with a stop at 57.25.

Trade Idea 2: Buy the July 11 Expiry 58 Calls (offered at 42 cents late Friday) on the same trigger.

Trade Idea 3: Buy the July 11 Expiry 56/58 bullish Risk Reversal (9 cents) on the same trigger (this uses margin).

Trade Idea 4: Sell the stock short on a move under 56.75 with a stop at 57.50.

Trade Idea 5: Buy the July 11 Expiry 56.5 Puts (49 cents) on the same trigger.

Trade Idea 6: Buy the July 11 Expiry 56.5/54 Put Spread (38 cents) on the same trigger.

Trade Idea 7: Buy the July 11 56.5/55-54 1×2 Put Spread (20 cents) on the same trigger (this uses margin).

Disclosure: I have a long position for some clients in the stock at the time of this writing.

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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 last full week of June kicks off into Summer, sees the equity markets looking strong. Elsewhere look for Gold to continue higher while Crude Oil joins it to the upside. The US Dollar Index has a short term downward bias while US Treasuries consolidate but also are biased lower. The Shanghai Composite looks like it has more consolidation in store for it while Emerging Markets are biased to the upside with possible consolidation. Volatility looks to remain very low keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts are also biased to move higher on the longer timeframe with the shorter timeframe strongest in the IWM and with the SPY and QQQ looking like they could consolidate in the short term. Use this information as you prepare for the coming week and trad’em well.
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