Top Trade Ideas for the Week of August 5, 2013: Bonus Idea

• Posted by Greg Harmon
• on August 5th, 2013

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

Amazon, Ticker: $AMZN

Amazon, $AMZN, ran higher from a break out of the broad 255 to 275 range and is now consolidating around 305 in a Diamond. The Diamond can break either way. An up move carries a Measured Move higher to 335 and a break lower a retrace to 275. Opportunity both ways. The Relative Strength Index (RSI) is in bullish territory but falling with a Moving Average Convergence Divergence indicator (MACD) that is pulling back. It seems to favor a move lower but the market tailwind is blowing higher. Support can be found at 298-300 and 284 followed by 275 and 268 before 260 and 255. Resistance is possible higher at 309.50 and 312.50.

long Ideas
Trade Idea 1: Buy the stock on a move over 306.50 with a stop at 303.

Trade Idea 2: Buy the August 305 Calls (offered at $4.70 late Friday) on the same trigger.

Trade Idea 3: Buy the August9w/August 310 Call Calendar ($1.55) on the same trigger.

Trade Idea 4: Buy the August 310/320 Call Spread ($1.95) on the same trigger.

Trade Idea 5: Buy the August 310/320 Call Spread and sell the August 295 Put (free) on the same trigger.

Short Ideas
Trade Idea 1: Sell the stock short on a move under 300 with a stop at 305.

Trade Idea 2: Buy the August 300 Puts ($3.50) on the same trigger.

Trade Idea 3: Buy the August 300/290 Put Spread ($2.35) on the same trigger.

Trade Idea 4: Buy the August9w 300 Put ($1.95) on the same trigger.

Trade Idea 5: Buy the August9w 300/290 Put Spread selling the August 9w 310/320 Call Spread ($1.43) on the same trigger.

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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 Saturday which, as August begins look for Gold to consolidate or bounce in its downtrend while Crude Oil works higher. The US Dollar Index may consolidate in the downtrend while US Treasuries are consolidating but biased lower. The Shanghai Composite and Emerging Markets are also consolidating a bounce but biased to the downside. Volatility looks to remain very low keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ, despite the recent new highs. Use this information as you prepare for the coming week and trad’em well.

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