Sunday, March 13, 2011

Trade Ideas: Charts for the week of March 14th

SLV continues in this rising channel but if this breaks down I have a list of silver stocks ready to buy puts on. 

GLD has already broken down out of its channel but fond support on its 20 day EMA.  A break below here though and puts on gold stocks could work. 

AAPL has been in a strong up trending channel but I would look to play this both ways here.  A bounce back into the channel as a long but a break below this channel and I'd buy some puts and look to roll them into a bear put vertical, a bear put fly or a bear put condor.

The strong up trend for about 6 months where the OIH would alway find support at it 20 day looks to be breaking down.  After it fills it gap this it worth looking at from the short side.  If it breaks its 50 day on a closing basis and with volume look to press shorts. 

SHAW Shaw Group Inc is testing the lower end of its channel.  This could be played for a bounce back into the channel with a possible target of new highs.  Or a breakdown out of this channel with targets of the 100 and 200 day moving averages. 

ERY Direxion Energy Bear 3x Shares have been going from the upper left to the lower right for some time now.  Last week its down trend was broken and it has now closed above its 20day for two days in a row. I wouldn't be surprised to see it test its down trend line again which could set up a great long swing trade.  Keep this one on your watch list. 

VZ Verizon Communications Inc. you could play long or short out of this Symmetrical Triangle.  Resistance at 37 and support at 33.15ish to 34.35ish.  The stock continues to find support at its 50 day and oscillates around its 20 day.  This pattern should resolve soon.  The stock pays a dividend of over 5% so I wouldn't stay short very long and I think the bias would be to the upside as investors are looking for yield.

WMGI Wright Medical has been stuck below 16.80ish since January and has been making higher lows.  One to keep an eye on. 

MR Mindray Medical Intl Ltd has been a great range trade stock by going long around 25.5ish to play a move up and shorting the descending trend line to play the move back down.  Could play this one either way.

TYH Technology Bull 3x broke down from a H&S pattern that measures 8 points so a target move down to 41 could be in play.  Note the 200 day will be down around there as well if the market rolls over.

I continue to feel that UUP is is one of the most important charts out there.  If the $ can bounce get ready for volatility and if this major support line breaks to the downside the market ought to at least retest the highs.  If you took a long here you could put a stop at the lows and you have a very favorable risk reward set up.  The options market gives some pretty interesting ways to play this as well.  I will be watching the flow very carefully to try to get some hints. 

No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

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