Here is your Bonus Idea with links to the full Top Ten:
Apple (NASDAQ:AAPL), started moving higher out of consolidation about this time last year. The price pushed over its 200 day SMA in July and retested that in November as it went through a long broad consolidation. It started higher from there and broke above the October top in January rising to the peak in May. After a brief consolidation it pulled back, last week reaching a similar discount from the top as it did in November. That led to a reversal and the current consolidation.
The RSI moved all the way from overbought to the edge of oversold territory during the pullback. Now it is running higher again. The MACD also dropped to negative and is now curling up towards a cross up. There is resistance at 147.50 and then 155.50 before free air. A similar $50 move higher would give a price of 192 and a $1 trillion market cap. Support lower sits at 142 and 140 followed by 137.50 and 127. Short interest is low at 1.2% and the company is expected to report earnings next on July 25th.
The July options chain shows large open interest on the 5’s (135, 140, 145, 150 and 155) on the put side. On the call side it is similar at 145 and then twice as big at 150 and 155, an upward bias. The July 28 Expiry weekly options show open interest centered from 144 to 146 on the put side and at 146 on the call side. August options are centered on 135 and 140 on the put side and large from 150 to 160 on the call side.
Apple, Ticker: AAPL
Trade Idea 1: Buy the stock on a move over 147.50 with a stop at 142.
Trade Idea 2: Buy the stock on a move over 147.50 and add a July 28 Expiry 146/142 Put Spread ($1.80) for protection, selling an August 155 Call ($1.60) to pay for it.
Trade Idea 3: Buy an August 140/150 bull Risk Reversal (75 cents).
Trade Idea 4: Buy July/August 150 Call Calendar ($1.91) and sell the July 140 Put (72 cents) to add leverage.
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 as the markets head into the end of the second Quarter of the year, saw the equity markets remaining strong on both timeframes and poised for more upside.
Elsewhere look for gold to participate to the upside while crude oil continues the trend lower. The US Dollar Index remains marking time in consolidation while US Treasuries continue higher. The Shanghai Composite and Emerging Markets (NYSE:EEM) both look to continue uptrends, although Emerging Markets may need some further consolidation first.
Volatility looks to remain at abnormally low levels keeping the bias higher for the equity index ETF’s SPY (NYSE:SPY), Russell 2000 (NYSE:IWM) and QQQ. Their charts look stronger on the weekly timeframe than the shorter one. And on that shorter timeframe the IWM and QQQ look set to outperform the SPY next week. 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.