Here is your Bonus Idea with links to the full Top Ten:
Jabil Circuit Inc (NYSE:JBL), made a bottom in May 2016 and started higher It broke over its 200 day SMA in August and consolidated for nearly the rest of the year after that. Then it gapped up following its earnings report in December and has continued to move higher. Since May this year it has built an ascending triangle, loosely with the 100 day SMA as rising support and resistance at 31.65. A break out of this triangle would look for a move of $3.60.
Momentum is positive and building. The RSI is rising in the bullish zone and making a higher high. The MACD is also crossed up and rising and far from any extreme readings. Even the Bollinger Bands® are starting to open higher allowing a move. There is no resistance over 31.60. Support lower may sit at 30.20 and 29.20 followed by 28.75 and 28. Short interest is moderate at 5.6% and the company is expected to report earnings next September 20th after the market closes.
The weekly options for the shortened holiday week show little open interest and do not give any clarity of direction. The monthly September options show big open interest at 27, 28 and 30 on the put side but bigger size at 32 on the call side suggesting a possible pin level. The September 22 Expiry options, the first after the earnings report, have small activity but the largest by far is the open interest at the 32 call strike. These suggest a $2 move on the stock price between now and expiry.
Monthly October options are also light but he December options show very large open interest at the 30 and 28 put strikes. Prior to August expiration, this expiry would have been the only choice to use to hedge the September earnings report.
Jabil, Ticker: JBL
Trade Idea 1: Buy the stock on a move over 31.60 with a stop at 30.20.
Trade Idea 2: Buy the stock on a move over 31.60 and add a September 22 Expiry 31/29 Put Spread (70 cents) for protection. Sell the December 35 Call (60 cents) to pay for most of the protection.
Trade Idea 3: Buy the September 22 Expiry 31/32 Call Spread (70 cents) and sell the 29.5 Put (30 cents).
Trade Idea 4: Buy the December 29/33 bull Risk Reversal (35 cents).
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 the Labor Day shortened week sees equities looking stronger led by the PowerShares QQQ Trust Series 1 (NASDAQ:QQQ).
Elsewhere look for Gold to continue in its uptrend while Crude Oil sustains a small bounce in the downtrend. The US Dollar Index continues to move down with small bounces while US Treasuries are pulling back in their uptrend. The Shanghai Composite is strong consolidating a break out, ready to continue higher and Emerging Markets are rising and making 3 year highs.
Volatility looks to remain at very low levels keeping the bias higher for the equity index ETF’s SPDR S&P 500 (NYSE:SPY), iShares Russell 2000 (NYSE:IWM) and QQQ. Their charts are all recovering with the SPY gaining short term strength, nearing a trend resumption while the IWM heads higher short term in a rising channel. The QQQ breaking to new all-time highs looks the strongest. 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.