Top Trade Ideas for the Week of November 21, 2011: Bonus Idea

• Posted by Greg Harmon
• on November 20th, 2011

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

JB Hunt Transportation Services, Ticker: $JBHT

JB Hunt Transportation Services, $JBHT, is breaking out of a consolidation range. It has a Relative Strength Index (RSI) that is holding bullish after testing the mid line and a Moving Average Convergence Divergence (MACD) indicator that is about to cross bullishly positive. Both support more upside. There is resistance higher at 44.80 followed by 46 and then 47 and 48.50. Support lower comes at 42.80 followed by 42.10 and then 41. This is a good trade on the long side on a move over 44. Use a 3% trailing stop and take some profits on a touch at 46. For an options alternative consider the December 45/40 Bullish Risk Reversal using the same trigger. Buying the December 45 Call and selling the December 40 Put, to create the Risk Reversal. This was offered late Friday a 60 cents. On a quick move higher the 45 Calls can be rolled higher to the 50 Calls to take profits and still participate in further upside.

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After reviewing over 900 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 we head into a Holiday shortened week, shows the market poised to move lower. Gold is set up to continue lower while Crude Oil remains in an uptrend but looks ready to continue its pullback. The US Dollar Index and US Treasuries both look strong, and the foreign markets followed, the Shanghai Composite and Emerging Markets both look to continue lower. Volatility looks to remain in the 30-36 range. Everything is aligned against Equities and in fact support the chart views that the Equity Index ETF’s, SPY, IWM and QQQ are all set to move lower but at support on the weekly charts. The Strong US Dollar Index and Treasuries will continue to be the key as they look to reinforce the negative view on Equities. If either or both move strongly against the chart set ups, US Equities could benefit and move higher. Use this information as you prepare for the coming week and trade’m 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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