Here is your Bonus Idea with links to the full Top Ten:
CME Group (NASDAQ:CME), broke above resistance in September, triggering a Cup and Handle pattern. The stock met that price objective in March and has pulled back since. But the pullback found support at the rising trendline that has been in place since July and moved higher Friday. A Measured Move higher would target a run up to 107.50. This gives a good reward to risk set up.
The RSI is also turned back higher while the MACD is leveling after a pullback. The short interest is low at only 2.4% and the company is expected to report earnings next on May 7th before the open.
CME Group,
Trade Idea 1: Buy the stock with a stop at 88.50.
A simple trade in the stock.
Trade Idea 2: Buy the May 8 Expiry 92.50 Calls (offered at $2.20 late Friday).
Limiting risk to the premium paid but still giving solid upside.
Trade Idea 3: Buy the June 92.5 Calls ($3.20).
Same as #2 but giving more time for a slightly higher cost.
Trade Idea 4: Buy the June 92.5/May 8 Expiry 95 Call Diagonals ($2.30).
Looks for a rise to not exceed 95 by earnings
Trade Idea 5: Buy the June 92.5/May 8 Expiry 95 Call Diagonals and sell the May 87.5 Puts ($1.50).
Adds leverage to trade #4 with a possibility to own the stock at 87.5.
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 April Options Expiration, sees the equity markets have gained some strength.
Elsewhere look for gold to continue higher in the short term while Crude Oil moves in its consolidation zone. The US Dollar Index is moving higher again while US Treasuries are biased lower in the short term. The Shanghai Composite and Emerging Markets are both biased to the upside with the Chinese market looking overheated again.
Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPDR S&P 500 (ARCA:SPY), iShares Russell 2000 (ARCA:IWM) and PowerShares QQQ (NASDAQ:QQQ), despite the moves higher this week. Their charts also look good for more upside with the IWM steady and the QQQ and SPY with some short term hurdles to overcome. Use this information as you prepare for the coming week and trad’em well.
Disclaimer: 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.