Top Trade Ideas for the Week of October 7, 2013: Bonus Idea

• Posted by Greg Harmon
• on October 7th, 2013

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

Con-Way, Ticker: $CNW

Con-Way, $CNW, completed a loose Cup and Handle pattern in early August and has been pulling back since in a channel. Friday it poked above that channel. It has a Relative Strength Index (RSI) that is rising and in bullish territory and a MACD that is positive and crossed up. These support a move higher. The Measured Move out of the channel takes it to 47.60 and then there is another Measured Move to 48.50 above that. Resistance is found at 44.30 and 44.80 before 46. Support lower comes at 42 and 41.50 followed by 40.90 and 39.80.

Trade Idea 1: Buy the stock on a move over 44.30 with a stop at 43.30.

Trade Idea 2: Buy the November 42.5 Calls (offered at $3.30 late Friday).

Trade Idea 3: Buy the November 45/47.50 Call Spread ($1.10).

Trade Idea 4: Sell the November 40 Puts (80 cent credit).

Trade Idea 5: Buy the November 45/47.50 Call Spread and sell the November 40 Puts (30 cents).

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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, as the 4th Quarter and earnings season begin provides no additional clarity in the equity markets. Look for Gold to continue lower while Crude Oil rises in the short pullback. The US Dollar Index looks to continue lower while US Treasuries consolidate with a downward short term bias. The Shanghai Composite is poised to move lower and Emerging Markets are biased to the upside now. Volatility looks to remain low but drift higher although still in an area that is beneficial for the equity index ETF’s SPY, IWM and QQQ. There charts show that the QQQ and IWM remain strong and consolidating in bull flags or channels, while the pullback in the SPY may be over. Use this information as you prepare for the coming week and trad’em 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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