Top Trade Ideas for the Week of May 5, 2014: Bonus Idea

• Posted by Greg Harmon
• on May 5th, 2014

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

Halliburton, Ticker: $HAL

Halliburton, $HAL, moved through a bearish Shark harmonic but never retraced, a bullish sign. Continuing higher it is currently consolidating in a bullish flag with a Measured Move higher to near 70 on a break up. The RSI is bullish and the MACD holding and avoiding a cross, both supporting more upside price action. Support lower may be found at 62.15 and 60 followed by 57. There is resistance at 65 on the upside.

Trade Idea 1: Buy the stock on a move over 64 with a stop at 62.75.

Trade Idea 2: Buy the May 23 expiry 64 Calls (offered at $1.24 late Friday) on the same trigger.

Trade Idea 3: Buy the May 23 expiry 64/ May 65 Call Diagonals (68 cents) on the same trigger.

Trade Idea 4: Buy the May/June 65 Call Calendars (90 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 Saturday which, heading into the ‘Sell in May and Go Away’ season sees the equity markets looking better. Elsewhere look for Gold to consolidate in its uptrend with a bias higher while Crude Oil continues lower. The US Dollar Index seems biased lower while US Treasuries are biased higher. The Shanghai Composite and Emerging Markets are both biased to the upside. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The indexes themselves all look better to the upside in the short term with the SPY strongest followed by QQQ and then IWM. Use this information as you prepare for the coming week and trad’em well.

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