Trade Ideas - Week Of November 11: E*Trade Financial

Here is your Bonus Idea with links to the full Top Ten:

E*TRADE Financial, Ticker: ETFC

E*TRADE Financial, $ETFC, has gone through a series of moves higher and then consolidation in either a channel or a flag. The latest iteration is a consolidation box between 16.20 and 17.75 since mid September. The price is now testing the top of that box after printing a bullish Marubozu on Friday. This can also be seen as price approaching the top of an ascending triangle (pink). A break of the triangle targets 19.90 while a break of the box targets 20. Either one looks nice doesn’t it? Short interest is at 6% which could help a little. There is no resistance over 17.75 and support lower comes at 16.80 and 16.20 before 15.60, 15.34 and 14.

Trade Idea 1: Buy the stock on a move over 17.75 with a stop at 17.10.

Trade Idea 2: Buy the December 17 Calls (offered at $1.16 later Friday) on the same trigger.

Trade Idea 3: Buy the December 18/20 Call Spreads (53 cents) on the same trigger.

Trade Idea 4: Buy the December/January 19 Call Calendars (23 cents) on the same trigger.

Trade Idea 5: Buy the December/January 19 Call Calendars and sell the January 16 Puts (9 cent credit) 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 November options expiration week sees the markets rattled but with a strong come. Look for Gold to continue lower with Crude Oil, although the latter is at a spot that could provide a reversal higher. The US Dollar Index remains strong and looks better higher while US Treasuries are biased to continue lower. The Shanghai Composite and Emerging Markets are biased to the downside with the risk of the Chinese market running in place like last week. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts show better strength in the SPY followed by the QQQ and then the IWM the weakest, but none in full blown drive higher every day mode. Use this information as you prepare for the coming week and trad’em well.

Disclosure: 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.

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