Top Trade Ideas for the Week of April 29, 2013: Bonus Idea

• Posted by Greg Harmon
• on April 29th, 2013

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

BlackRock, Ticker: $BLK

BlackRock, $BLK, had a long run higher from the May 2012 low to the recent consolidation between March and today. After two touches at the 50 day Simple Moving Average (SMA) there are signs that this leg higher could create another break up. The Relative Strength Index (RSI) is bullish and rising. In fact the price is near completion of a Positive RSI Reversal target of 268.11. But the Moving Average Convergence Divergence indicator (MACD) is also turned up and crossed to positive, supporting more upside. The Bollinger bands are also opening for a ride higher. There is no resistance above 266 and support below is found at 260 and 252 followed by 245 and 235.

Trade Idea 1: Buy the stock on a move over 266 with a stop at 260.

Trade Idea 2: Buy the May 270 Calls (offered at $2.25 late Friday) on a move over 266.

Trade Idea 3: Buy the June 270 Calls ($4.90) on a move over 266.

Trade Idea 4: Buy the June 270/280 Call Spread ($2.15) on a move over 266.

Trade Idea 5: Sell the June 230 Puts (95 cents).

Trade Idea 6: Buy the June 270/280 Call Spread sell the June 230 Puts ($1.20) on a move over 266.

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After reviewing over 1,000 charts, I have found some good setups for the week. TThese were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which, as we head into May and everyone tells you to sell and go away, looks for Gold to stall in the bounce while Crude Oil continues higher. The US Dollar Index seems content to move sideways again while US Treasuries are biased high but may also continue to consolidate. The Shanghai Composite is looking better to the downside with Emerging Markets looking to consolidate. Volatility looks to remain a no issue keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The reversal candlestick patterns to end the week suggest a pullback for the coming week though. Longer term the uptrends remain with the QQQ looking the strongest. 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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