Top Trade Ideas for the Week of September 8, 2014: Bonus Idea

• Posted by Greg Harmon
• on September 8th, 2014

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

Google, Ticker: $GOOGL

Google, $GOOGL, made a high in February and then pulled back to a bottom in May. Since then it has been tightening the range in a wedge now between 580 and 600. There is resistance at 598 and a move over that would target the Measured Move higher to 607. That is when it may get interesting. A move over 607 breaks the Ascending triangle and targets 700. The RSI is rising and remains in the bullish zone with a MACD that is moving up after crossing up last week. There is resistance 607 and 613 and then free air. Support lower may come at 580 and 570 followed by 550.

Trade Idea 1: Buy the stock on a move over 598 with a stop at 585.

Trade Idea 2: Buy the September 600 Calls (offered at $6.00 late Friday).

Trade Idea 3: Buy the September/October 600 Call Calendar ($11.70).

Trade Idea 4: Buy the October 605/630 Call Spread ($10.00).

Trade Idea 5: Buy the October 605/630 Call Spread and sell the September/October 570 Put Calendar ($3.50).

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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 kids are back to school and the adults file back into work from vacations sees the equity markets looking strong but with short term consolidation likely. Elsewhere look for Gold to continue lower but not stray much from 1300 while Crude Oil consolidated in its downtrend. The US Dollar Index looks strong and higher while US Treasuries are biased lower in the uptrend. The Shanghai Composite is also strong and biased higher along with Emerging Markets. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts show signs of consolidation in the short run with the SPY and QQQ a bit strong on the longer timescale. Use this information as you prepare for the coming week and trad’em well.

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