Top Trade Ideas for the Week of June 2, 2014: Bonus Idea

• Posted by Greg Harmon
• on June 2nd, 2014

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

PNC Financial, Ticker: $PNC.

PNC Financial, $PNC, has been in a rising trend since October. The recent short term double top at 88 in March and April led to a 38.2% pullback from the move higher and it is consolidating in a symmetrical triangle since early April over that level. It is testing the top of that triangle with a RSI that is rising and bullish and a MACD that is crossed up and rising heading into the week. There is resistance higher at 85.50 and 88 and then free air higher and a target of 91.20 from the triangle break. There is support at 84.30 and 82.90 followed by 82 and 80.90 before 80 lower.

Trade Idea 1: Buy the stock on a move over 85.50 with a stop at 84.

Trade Idea 2: Buy the June 85 Calls (offered at $1.69 late Friday) on the same trigger.

Trade Idea 3: Buy the July 85/June 87.5 Call Diagonals ($1.66) on the same trigger.

Trade Idea 4: Buy the June 85/July 82.5 Put Diagonals (free) for a potential pullback.

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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, as May ends and June begins sees the equity markets looking very bullish. Elsewhere look for Gold to continue lower while Crude Oil has an upward bias. The US Dollar Index is biased to pullback in the uptrend while US Treasuries may consolidate or pullback in their stronger uptrend. The Shanghai Composite looks headed lower again while Emerging Markets are pulling back in the uptrend. Volatility looks to remain subdued and biased to the downside keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts show the SPY and QQQ in good uptrends while the IWM is consolidating with an upward bias. It may have the best potential. Gold moving lower and the potential for the Dollar to pullback and maybe Treasuries is a better scenario for equities. Use this information as you prepare for the coming week and trad’em well.

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