Here is your Bonus Idea
TJX (NYSE:TJX) jumped higher after reporting earnings in August and then consolidated. The stock never pulled back with the market in October and that got some people’s attention. In fact as the market started to rise TJX started to push higher through the end of the year. In 2015 it has tightened consolidation against resistance at that end of year high, in an ascending triangle. On a conservative measure, if it breaks to the upside, it would establish a price target of 78. The last leg higher took 2 months.
The momentum indicators are bullish heading into this week, with the RSI moving higher. It has been bullish for over a year. The MACD crossed up Friday, giving it a bullish signal. Finally the Bollinger Bands® are tightening, often a precursor to a move.
There is no resistance above the top at 69.50 to 70. Support lower may be found at 67.60 and 65.65 followed by 64.25 and 61. Short interest is negligible at less than 1% and the company is expected to report earnings next in late May.
TJX Companies (NYSE:TJX)
Trade Idea 1: But the stock on a move over 69.75 with a stop at 67.50.
A straight stock buy.
Trade Idea 2: Buy the April 70 Calls (offered at $1.00 late Friday) on the same trigger.
A defined risk way to participate in upside price action.
Trade Idea 3: Buy the May 70/80 Call Spread (about $1.50).
Give the stock more time to move higher and caps the return for lower cost.
Trade Idea 4: Buy the July 65/70 bullish Risk Reversal ($1.40).
Adds leverage from the short Put and long term upward potential at low cost.
Trade Idea 5: Buy the October 70/80 Call Spread ($3.20) and sell the April/October 67.5 Put Calendar ($2.80 credit) for a net 40 cent cost.
Gives a long term upside potential in the call spread and lowers the cost by selling the Put Calendar, to give big leverage, but also protection through April Expiry.
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 spring, College Basketball’s March Madness, the April options cycle and the last full week of March, sees the equity markets are looking strong.
Elsewhere look for gold to bounce higher in its downtrend while Crude Oil consolidates in its downtrend. The US dollar Index is consolidating the move up and US Treasuries are looking strong. The Shanghai Composite is also strong and looks to move higher while Emerging Markets are biased to the upside in the short run but not looking really strong.
Volatility looks to remain subdued and drifting lower keeping the bias higher for the equity index ETF’s (ARCA:SPY), (ARCA:IWM) and (NASDAQ:QQQ). Their charts also look good for more upside with the IWM the strongest even at all-time highs, and the SPY and QQQ showing signs of a possible short term pause before another move up. 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.