Top Trade Ideas for the Week of July 14, 2014: Bonus Idea

• Posted by Greg Harmon
• on July 14th, 2014

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

Visa, Ticker: $V

Visa, $V, is pressing up against resistance since the beginning of April at 217. It is finding support at the 100 day SMA since the last jump up making for a higher low. The RSI is bullish and strong and the MACD is rising, both supporting the upside. A push through the resistance region carries a target to 236 to 237. There is very large Open Interest this week at the 220 Strike on the Call side. The company reports earnings July 24th.

Trade Idea 1: Buy the stock on a move over 217 with a stop at 212.

Trade Idea 2: Buy the July 25 Expiry 217.5 Calls (offered at $3.60 late Friday) on the same trigger.

Trade Idea 3: Buy the July 25 Expiry 217.5/July 220 Call Diagonal ($2.86) on the same trigger.

Trade Idea 4: Buy the July 217.5/220 Call Spread (94 cents) on the same trigger.

Trade Idea 5: Buy the July 217.5/220 1×2 Call Spread (20 cents) 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 Friday which, heading into July Options Expiration Week sees the Equity markets as mixed. Elsewhere look for Gold to continue in its uptrend while Crude Oil continues lower. The US Dollar Index seems content to move sideways while US Treasuries are biased higher but may consolidate. The Shanghai Composite is stuck in sideways consolidation while Emerging Markets are biased to the upside while they consolidate. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The QQQ looks the strongest of the bunch reversing higher followed by the SPY but with the IWM looking weak. Use this information as you prepare for the coming week and trad’em well.
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