Here is your Bonus Idea with links to the full Top Ten:
Visa (NYSE:V), $V, started moving higher out of the 2016 election. It paused at the beginning of this year, bouncing off of the 100 day SMA a few times and then resumed the path higher in April. It continued to a top at the end of September and then got hit with the rest of the market. It is down to the 200 day SMA now and holding at support.
The RSI is in no man’s land between 40 and 60 with the MACD negative and falling. There is support that has held it for 6 months at 130 and then 125 and 121 before 117 and 113. This is also a 38.2% retracement of the move higher. Resistance above sits at 136.50 and 140 then 143 and 145.25 before 148.25 and 152. Short interest is low at 1.5%. The company is expected to report earnings next January 30th.
The December options chain shows big open interest on the call side at the 145 strike with smaller size at 140 and 135 on both sides. The January chain has open interest build to a peak at 135 on the put side, but it is bigger and peaks at 140 on the call side. The March chain, the first to cover the next earnings report, is building size but centered around the 125 and 130 puts, as well as the 150 calls.
Visa, Ticker: $V
Trade Idea 1: Sell the stock short on a move under 130 with a stop at 136.50.
Trade Idea 2: Sell the stock short on a move under 130 and buy a December 136 Call ($2.50) for protection.
Trade Idea 3: Buy the December 130 Puts ($2.72).
Trade Idea 4: Buy the January 130 Puts ($4.00) and sell the March 115 Puts ($2.28 credit).
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 with Thanksgiving behind and the holiday shopping season in full swing saw the price action in the equity markets casting a dark shadow over the festivities.
Elsewhere look for Gold to continue in its uptrend while Crude Oil continues to move lower. The US Dollar Index is resuming its move higher while US Treasuries are reversing to the upside. The Shanghai Composite may also be reversing higher while Emerging Markets continue to pause in their downtrend.
Volatility remains elevated and has an upward bias which is keeping the bias lower for the equity index ETF’s SPY (NYSE:SPY), IWM and QQQ. Their charts all look weak on the shorter timeframe, with the QQQ the worst under the October lows and nearing the February lows. The IWM is nearing 12 month support while the SPY sits at the October low. Use this information as you prepare for the coming week and trad’em well.
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.