Top Trade Ideas for the Week March 23, 2015: Bonus Idea

• Posted by Greg Harmon
• on March 23rd, 2015

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

TJX, $TJX, jumped higher after reporting earnings in August and then consolidated. The stock never pulled back with the market in October and that got some people’s attention. In fact as the market started to rise TJX started to push higher through the end of the year. In 2015 it has tightened consolidation against resistance at that end of year high, in an ascending triangle. On a conservative measure, if it breaks to the upside, it would establish a price target of 78. The last leg higher took 2 months.

The momentum indicators are bullish heading into this week, with the RSI moving higher. It has been bullish for over a year. The MACD crossed up Friday, giving it a bullish signal. Finally the Bollinger Bands® are tightening, often a precursor to a move.

There is no resistance above the top at 69.50 to 70. Support lower may be found at 67.60 and 65.65 followed by 64.25 and 61. Short interest is negligible at less than 1% and the company is expected to report earnings next in late May.

TJX, Ticker: $TJX

Trade Idea 1: But the stock on a move over 69.75 with a stop at 67.50.
A straight stock buy.

Trade Idea 2: Buy the April 70 Calls (offered at $1.00 late Friday) on the same trigger.
A defined risk way to participate in upside price action.

Trade Idea 3: Buy the May 70/80 Call Spread (about $1.50).
Give the stock more time to move higher and caps the return for lower cost.

Trade Idea 4: Buy the July 65/70 bullish Risk Reversal ($1.40).
Adds leverage from the short Put and long term upward potential at low cost.

Trade Idea 5: Buy the October 70/80 Call Spread ($3.20) and sell the April/October 67.5 Put Calendar ($2.80 credit) for a net 40 cent cost.
Gives a long term upside potential in the call spread and lowers the cost by selling the Put Calendar, to give big leverage, but also protection through April Expiry.

Premium Content
The Best

The Rest Premium

Free Content
The Rest

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above.

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 spring, College Basketball’s March Madness, the April options cycle and the last full week of March, sees the equity markets are looking strong.

Elsewhere look for Gold to bounce higher in its downtrend while Crude Oil consolidates in its downtrend. The US Dollar Index is consolidating the move up and US Treasuries are looking strong. The Shanghai Composite is also strong and looks to move higher while Emerging Markets are biased to the upside in the short run but not looking really strong.

Volatility looks to remain subdued and drifting lower keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts also look good for more upside with the IWM the strongest even at all-time highs, and the SPY and QQQ showing signs of a possible short term pause before another move up. Use this information as you prepare for the coming week and trad’em well.

Get my new ebook, Markets for 2015 and Beyond, a long term forecast with all proceeds going to charity.

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through March 2015 Expiry and sign up here

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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.

blog comments powered by Disqus