Top Trade Ideas for the Week of November 18, 2019: The Rest Premium

• Posted by Greg Harmon
• on November 17th, 2019

Here are the Rest of the Top 10 with Premium Content in Bold:

Boeing, Ticker: $BA

Boeing, $BA, stock price gapped down in March and has floundered since. Since the middle of October it has been rising though. And it closed last week moving over a short term resistance. The RSI is rising into the bullish zone with the MACD crossed up and positive. Look for continuation to participate. The tight Bollinger Bands® are starting to open to allow a move. There is resistance above at 377 and 386 then 398 and 402 before a gap fill at 417. Support lower comes at 368.50 and 362 then 349 and 339. Short interest is low at 1%. Enter long on a move over 374 with a stop at 368. As it moves over 380 move the stop to break even and then to a $7 trailing stop over 381. As an options trade consider the December 375 Calls (offered at $10.20 late Friday) and trade them like the stock trade (using the stock price as a trigger, stop and target). Sell the December 330 Puts ($1.50) and or the December 400 Calls ($2.46) to lower the cost.

DexCom, Ticker: $DXCM

DexCom, $DXCM, had a failed break out in August before falling back into a long sideways channel. It finally broke the channel for good at the start of November and has been consolidating the move. The RSI is strong and a bit over bought but running flat with the MACD rising. Look for a second push to participate. There is no resistance above 208.40. Support lower comes at 202.50 and 194 then 185. Short interest is moderate at 6%. Enter long on a move over 209 with a stop at 202.50. As it moves over 212 move the stop to break even and then to a $6 trailing stop over 215. As an options trade consider the December 210 Calls ($8.10) and trade them like the stock trade. Sell the December 230 Calls ($1.60) to lower the cost.

Fidelity National Information Services, Ticker: $FIS

Fidelity National Information Services, $FIS, started higher in December and kept going to a top in September. Since then it has pulled back and found support in October. Now it is breaking over prior resistance with a RSI rising into the bullish zone and the MACD positive and climbing. Look for continuation to participate. The pullback retraced nearly 38.2% of the full move higher. There is resistance at 139 and 141.35. Support lower comes at 135 and 133 then 130 and 128 before 125. Short interest is low at 1.3%. Enter long on a move over 137 with a stop at 134. As it moves over 138.75 move the stop to break even and then to a $3 trailing stop over 140. As an options trade consider the January 140 Calls ($2.96) and trade them like the stock trade. Sell the December 125 Puts (52 cents) to lower the cost.

Graco, Ticker: $GGG

Graco, $GGG, rose from a bottom in December to peak in April. It pulled back in two steps from there, the second moving price under the 200 day SMA. It has held there consolidating since. Friday it moved over resistance with the RSI rising into the bullish zone and the MACD positive and moving higher. Look for continuation to participate. The pullback shows a transition to higher lows, a bottoming process, with the price now at the 200 day SMA. There is resistance above at 48.75 and 49.75 then 51.50 and 52.50 before 54. Support lower comes at 47.25 and 46.40. Short interest is low at 1.5%. Enter long on a move over 48 with a stop at 46.85. As it moves over 48.80 move the stop to break even and then to a $1.25 trailing top over 49.25. Options are too thinly traded to use for this trade.

Altria, Ticker: $MO

Altria, $MO, started lower from a high in April. It continued for nearly 6 months before finding support at the end of September. Since then it moved higher, stalling at the August mini consolidation, and now pushing through Friday. The RSI is rising in the bullish zone with the MACD flat but positive. Look for continuation to participate. As it punches higher the Bollinger Bands have started to open, to allow a move. There is resistance at 48.60 and 49 then 51 and 52.30 before 53 and 55. Support lower comes at 47 and 45.50. Short interest is low under 1%. Enter long on a move over 48.20 with a stop at 46.80. As it moves over 49 move the stop to break even and then to a $1.20 trailing stop over 49.40. As an options trade consider the December 27 Expiry 48.50 Calls (98 cents) and trade them like the stock trade.

Up Next: Bonus Idea

The Best

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 with November options expiration in the books sees equity markets surging.

Elsewhere look for Gold to drift lower in consolidation while Crude Oil marks time moving sideways. The US Dollar Index is drifting to the upside while US Treasuries bounce in their pullback. The Shanghai Composite looks to drift down in consolidation while Emerging Markets remain in broad consolidation.

Volatility continues to remain very low keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The SPY and QQQ look to continue the march higher while the IWM continues to churn in a wide consolidation at long term resistance. Use this information as you prepare for the coming week and trad’em well.

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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.

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