Top Trade Ideas for the Week of April 25, 2011: Bonus Idea

• Posted by Greg Harmon
• on April 24th, 2011

Here is your Bonus Idea with links to the full Top 10:

Amazon.com, Ticker:$AMZN

Amazon had a big move higher Wednesday and Thursday off of a double hammer at support near the 50 and 100 day Simple Moving Averages (SMA). With a Moving Average Convergence Divergence (MACD) indicator that is just crossing positive and a Relative Strength Index (RSI) sloping higher, it looks poised to continue next week. Also note that there is an Inverse Head and Shoulders forming that will confirm if it gets through the neckline at about 187.50. The target on a break would be 222.61. The first resistance is at 191.60. Over 191.60 you could consider taking some money out of the trade and rolling it into July 195 calls which went out at just under $7 on Thursday with the plan to eventually spread then against July 225 call spreads as the price nears 200.

The First 5

The Rest

These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which looks like higher prices for Gold and a bias higher for Crude Oil and US Treasuries. The US Dollar Index looks to continue its death march lower with the Shanghai Composite and Emerging markets moving to the upside. Continued subdued volatility will be supportive to more upside for the equity index ETF’s, SPY, IWM and QQQ, but being mindful that all three printed potentially bearish reversal candles on Thursday. Continued caution on the long side. Use this information to understand the major trend and how it may be influenced as you prepare for the coming week ahead. Trade’m well.

(As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

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