Here is your Bonus Idea with links to the full Top Ten:
AIG, Ticker: AIG
American International Group Inc (NYSE:AIG) pulled back hard through the end of September and into October. it found a bottom at 48.75 in the middle of the month and started back higher. The RSI also bottomed then and is now pushing through the mid line with a MACD crossed up and rising, both supporting more upside price action. What makes it attractive now is that it is consolidating the initial move in a bull flag. The Measured Move out of the flag higher would take it to 55.25. There is resistance at 52.30 and 53.50 followed by 54.70 and 56 before the prior top at 56.56. Support lower comes at 51.50 and 50.50. Short interest is low at just over 1%.
Trade Idea 1: Buy the stock on a move over 52.30 with a stop at 51.50.
Trade Idea 2: Buy the November 52.50 Calls (offered at $1.12 late Friday) on the same trigger.
Trade Idea 3: Buy the November 52.50/55 Call Spread (88 cents).
Trade Idea 4: Buy the November 52.50/November 7 Expiry 53.50 call Diagonal (69 cents).
Trade Idea 5: Buy the November 48.5/52.5 bullish Risk Reversal (81 cents).
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 the last week of October sees the equity markets have nearly fully recovered from the Droptoberfest™ selloff. Elsewhere look for Gold to resume its downtrend while Crude Oil consolidates with a bias to turns lower. The US Dollar Index remains strong but digesting its recent gains while US Treasuries are biased lower. The Shanghai Composite seems to be in short term pullback mode while Emerging Markets consolidate in the downturn with signs of a possible reversal higher. Volatility looks to to have settled back into the lower range putting the wind at the back of the equity index ETF’s SPY, IWM and QQQ. Their charts showed great strength last week and no reason for it to stop next week. Use this information as you prepare for the coming week and trad’em well.
Disclosure: 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.