Top Trade Ideas for the Week of September 24, 2012: Bonus Idea

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

Deere, Ticker: $DE

Deere, $DE, is testing a triple top at 83.25 after moving out of consolidation. It has support for a run higher from the rising and bullish Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that is positive. There is a gap above from 86.63 to 86.88 and resistance above that at 88.66. The 3-box reversal Point and Figure chart (PnF) carries a price objective of 102. Support lower is found at 80.55 and 78.30 followed by 76 and 74. If it does not break on Monday there will likely be more trade alternatives. October does not have any strikes over 85 open now and November will only begin trading Monday. But there are some good options now as well.

Trade Idea 1: Buy the stock on a move over 83.25 with a stop at 81.75.

Trade Idea 2: Buy the October 85 Calls on a move over 83.25.

Trade Idea 3: Sell the October 75 Puts on a move over 83.25.

Trade Idea 4: Buy the December 75/87.5 bullish Risk Reversal

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After reviewing over 1,000 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early. {+++}These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which, heading into the first week of autumn the market remain strong but with a few caution flags showing up. Gold looks to continue higher with Crude Oil continuing to pullback in the uptrend. The US Dollar Index continues to look week despite consolidating this week while US Treasuries consolidate with a bias lower. The Shanghai Composite looks horrible making new lows and nothing positive in the charts with Emerging Markets consolidating at resistance in the uptrend. Volatility looks to remain low paving the way for the equity index ETF’s SPY, IWM and QQQ, to continue higher. This is supported by the view of a lower Dollar Index and lower Treasuries. The Index ETF’s themselves all appear strong and held through Options Expiration, but may continue to consolidate. Use this information as you prepare for the coming week and trade’m well.

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Dragonfly Capital Views Performance Through September 2012 Expiry

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