Here is your Bonus Idea with links to the full Top Ten:
CVS Caremark, Ticker: CVS
CVS Caremark, (NYSE:CVS), has been in a good trend higher with a few healthy pullbacks along the way. The recent break of resistance higher 2 weeks ago stalled and pulled back to find support at 75.40. The Hammer reversal candle Thursday was confirmed higher Friday, giving a long entry signal, but a conservative trader might wait for a break to a new high over 77. The RSI is rising and bullish with a rising MACD, both supporting more upside. There is resistance at 77 and then free air higher. Support comes lower at 75.40 and 74 followed by 72.40 and 69.60.
Trade Idea 1: Buy the stock on a move over 77 with a stop at 75.
Trade Idea 2: Buy the June 75 Calls (offered at $2.36 late Friday) on the same trigger.
Trade Idea 3: Buy the August 77.5 Calls ($1.99) on the same trigger.
Trade Idea 4: Buy the August June 80 Call Calendar (84 cents) on the same trigger.
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 Memorial Day Weekend, and the official start of ‘work 4 days and then head to the Hamptons’ the equity markets have recovered a bit but not turned around fully. Look for Gold to continue its consolidation while Crude Oil remains biased higher. The US Dollar Index and US Treasuries also look higher with Treasuries perhaps ready for another short term pullback. The Shanghai Composite looks to consolidate over 2000 and Emerging Markets are biased to the upside. Volatility looks to subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their individual charts tell a different story with all in consolidation including the SPY, but the QQQ’s biased higher while the IWM is biased lower. 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.