#$bwa

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Dragonfly Capital - 5 Trade Ideas for Monday: Boeing, Biogen, Blackrock, BorgWarner and CBOE

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Boeing, $BA, comes into the week breaking short term resistance. It has an RSI in the bullish zone and the MACD positive period look for continuation to participate…

Biogen, $BIIB, comes into the week approaching resistance. It has an RSI in the bullish zone and a MACD positive period look for a break of resistance to participate…

Blackrock, $BLK, comes into the week breaking short term resistance. It has an RSI and the bullish zone and the MACD positive period look for continuation to participate…

BorgWarner, $BWA, comes into the week breaking resistance. It has an RSI in the bullish zone and a MACD positive period look for continuation to participate…

CBOE, $CBOE, comes into the week breaking resistance. It has an RSI in the bullish zone and a MACD positive and climbing. Look for continuation to participate…

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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 with the bulk of the 1st Quarter earnings in the rearview mirror and heading into next week’s May options expiration, saw equities continue to act strong and tacking on more new all-time highs for the fourth week in a row.

Elsewhere, look for Gold to continue walking the fence between a downtrend and digestion in the uptrend while Crude Oil bounces around in broad consolidation under $100/bbl. The US Dollar Index looks to continue to drift lower in consolidation while US Treasuries continue to hold over 16 month support like nothing is happening. The Shanghai Composite looks to continue a short term uptrend closing in on the 2026 top and a new 11 year high while Emerging Markets push to new highs in their uptrend.

The Volatility Index looks to continue in the normal zone removing all the pressure on equities. The charts of the SPY, the QQQ and the IWM continue to look extremely strong on the longer timeframe with a 6th positive week moving to new highs. On the shorter timeframe the SPY, the QQQ and the IWM also look very strong but with overheated momentum and may need a pause. Use this information as you prepare for the coming week and trad’em well.

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5 Trade Ideas for Monday: BorgWarner, CBOE, Costco, Envista and Oshkosh

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

BorgWarner, $BWA, comes into the week breaking to a new 14 month high. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…

Cboe Global Markets, $CBOE, comes into the week at resistance. It has a RSI in the bullish zone with the MACD positive. Look for a push over resistance to participate…

Costco, $COST, comes into the week rounding out of a pullback. It has a RSI rising at the midline with the MACD crossed up. Look for continuation to participate…

Envista, $NVST, comes into the week at resistance. It has a RSI in the bullish zone with the MACD positive. Look for a push over resistance to participate…

Oshkosh, $OSK, comes into the week at resistance. It has a RSI in the bullish zone with the MACD positive. Look for a push over resistance to participate…

Up Next: Bonus Idea                                                                                        

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If you like what you see sign up for more ideas and deeper analysis using this Get Premium link.   

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 another big week in earnings season, saw equity markets looking rattled following a 2 day move lower.

Elsewhere, look for Gold to continue to consolidate in its uptrend while Crude Oil drifts in consolidation. The US Dollar Index continues the intermediate term move to the downside near 3 year lows while US Treasuries continue to consolidate in their downtrend. The Shanghai Composite looks to consolidate the move to the top of the broad consolidation area while Emerging Markets see their short term uptrend threatened.

The Volatility Index looks to continue to rise just above normal levels making life more difficult for equity markets to the upside and threatening a pullback. The charts of the SPY and QQQ are breaking their short term moving averages for the first time since late April and look ripe for more downside. The IWM is slightly weaker as it drops below its 50 day SMA. Use this information as you prepare for the coming week and trad’em well.

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5 Trade Ideas for Monday: Anthem, Activision Blizzard, BorgWarner, JB Hunt and Momentive Global

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Anthem, Ticker: $ANTM

Anthem, $ANTM, comes into the week at resistance after a shallow pullback. The RSI is strong in the bullish zone with the MACD flat after a pullback and positive. Look for a push over resistance to participate…..

Activision Blizzard, Ticker: $ATVI

Activision Blizzard, $ATVI, comes into the week after breaking resistance and moving into the gap. The RSI is rising with the MACD curling back higher. Look for continuation to participate…..

BorgWarner, Ticker: $BWA

BorgWarner, $BWA, comes into the week approaching resistance. It has the RSI rising into the bullish zone with the MACD positive and moving higher. Look for a push over resistance to participate….

JB Hunt, Ticker: $JBHT

JB Hunt, $JBHT, comes into the week at resistance. The RSI is rising in the bullish zone with the MACD level after a pullback. Look for a push over resistance to participate…..

Momentive Global, Ticker: $MNTV

Momentive Global, $MNTV, comes into the week breaking short term resistance. The RSI is rising in the bullish zone with the MACD curling to cross up and positive. Look for continuation to participate…..

If you like what you see sign up for more ideas and deeper analysis using this Get Premium link.  

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 November options expiration week, equity markets showed resilience reversing an early week plunge.

Elsewhere look for Gold to continue its new uptrend while Crude Oil consolidates at the recent highs. The US Dollar Index also looks to continue its breakout higher while US Treasuries consolidate in their bounce. The Shanghai Composite looks to continue to churn sideways while Emerging Markets consolidate in a bull flag over long term support.

The Volatility Index looks to remain very low making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe. On the shorter timeframe both the QQQ and SPY look to have reversed a small pullback while the IWM still needs to trigger. Use this information as you prepare for the coming week and trad’em well.

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4 Trade Ideas for BorgWarner: Bonus Idea

BorgWarner, $BWA, bottomed with the market in March. The stock price rose from there in a steady trend until a blow off gap higher as it broke above the 200 day SMA in June. It pulled back and consolidated under the 200 day for a month before resuming the uptrend and topping out in September. Since then, it has been in a consolidation and finally rounded out of it last week. On a large scale this gives a target on an AB=CD to 60. That would put it within 15% of the all-time high from 2014. 

The RSI is back into the bullish zone for the first time since early September with the MACD positive and rising. The Bollinger Bands® have opened to allow the move higher. There is resistance at 44 and then 45.40 and 46.25 before 48.50 and 51 then 52.75 and 54.25. Support lower comes at 42 and 40.50 before 39 and 37.80 then 36.30 and 34.80. Short interest is elevated at 7%. The stock pays a dividend with a 1.59% annual yield and has been trading ex-dividend since November 30th. The company is expected to report earnings next on February 11th. 

The February options chain shows the open interest focused at 35 and 37.50 on the put side and then between 40 and 45 on the call side. The at-the-money straddle suggests traders are looking for a $3.85 move in the stock price by expiration. March options are focused at the 37.50 strike on both sides with the calls outnumbering the puts by 15 to 1. The April options are spread from 25 to 40 and small on the put side with a very large chunk at the 37.50 strike on the call side.

BorgWarner, Ticker: $BWA

Trade Idea 1: Buy the stock on a move over 44 with a stop at 41.80.

Trade Idea 2: Buy the stock on a move over 44 and add a February 42.50/40 Put Spread ($1.05) while selling the April 50 Calls (95 cents).

Trade Idea 3: Buy the February/April 50 call Calendar (60 cents) and sell the February 37.50 Put (25 cents).

Trade Idea 4: Buy the April 45/50 Call Spread And sell the April 37.50 Put for 30 cents.

If you like what you see sign up for more ideas and deeper analysis using this Get Premium link.  

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 with one week to go in January, sees equity markets remaining strong.

Elsewhere look for Gold to possibly reverse higher out of its pullback while Crude Oil continues to move up. The US Dollar Index continues it downtrend while US Treasuries consolidate in their move lower. The Shanghai Composite looks to continue higher after making 5 year highs while Emerging Markets print all-time highs, not seem in over 13 years as they continue to move up.

The Volatility Index looks to remain low and stable making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe. On the shorter timeframe both the QQQ and SPY have resumed their paths higher, while the IWM is taking a breather at new all-time highs. Use this information as you prepare for the coming week and trad’em well.

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5 Trade Ideas for Tuesday: American Express, BorgWarner, Electronic Arts, Intercontinental Exchange and Louisiana-Pacific

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

American Express, Ticker: $AXP

American Express, $AXP, had a horrendous December falling from an all-time high at 114 to a low at 89, a 20% drop, in 3 weeks. It has been moving higher since with a couple of steps so far. Friday saw the price push over short term resistance and retest the October low. The RSI is rising toward the bullish zone with the MACD moving up. Look for continuation to participate…..

BorgWarner, Ticker: $BWA

BorgWarner, $BWA, has been moving lower since topping in January last year. The move off of the December low has put price back at the November highs, a third touch there. It has a RSI that is rising and bullish, near overbought, with the MACD moving up and positive. Look for a push over resistance to participate…..

Electronic Arts, Ticker: $EA

Electronic Arts, $EA, started higher off of its 200 day SMA in December 2016. It topped in July last year and started moving lower. At the Christmas Eve low it had retraced that entire move, and lost 50% of its value. Since then it has been moving back higher and closed last week breaking a bull flag to the upside. The RSI is rising and bullish with the MACD positive and moving higher. Look for continuation to participate…..

Intercontinental Exchange, Ticker: $ICE

Intercontinental Exchange, $ICE, had trended higher until it broke down in December. It bounced back quickly to its 20 day SMA and then dropped again, this time to a higher low. A second bounce has it back at the early January high coming into the week. The RSI is rising through the mid line with the MACD crossed up and moving higher. Look for a push over resistance to participate…..

Louisiana-Pacific, Ticker: $LPX

Louisiana-Pacific, $LPX, fell fast from a top in September. It found support in October and bounced but quickly ran out of steam. A second trip down made lower low and it bounced again. It paused at a retest of the first bounce and is now moving higher again. The RSI is rising and bullish with the MACD positive and moving up. Look for a push over resistance to participate…..

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 with January Options Expiration behind and a long weekend ahead sees equity markets continuing to recover and looking strong.

Elsewhere look for Gold to pause in its uptrend while Crude Oil resumes the move higher. The US Dollar Index is showing short term strength while US Treasuries are biased to continue lower. The Shanghai Composite is also exhibiting short term strength and may be reversing higher while Emerging Markets continue to move up.

Volatility is back down to the lows since equities started to drop in October making the path higher the easier one for equities. The equity index ETF’s SPY, IWM and QQQ, are all responding well in both the short and intermediate term charts. But they all remain short of confirming reversals with a higher high and below their 200 day SMA’s. More work to be done. Use this information as you prepare for the coming week and trad’em well.

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5 Trade Ideas for Monday: Abbott Labs, ARRIS, BorgWarner, Lockheed and Nasdaq

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Abbott Labs, Ticker: $ABT

Abbott Labs, $ABT, peaked in August of 2016 and started a saw-tooth move lower. 3 steps found it at a bottom, at a higher low, in December. It hovered there for the rest of the year before a move higher. A slight pullback was followed by a second move up. Now it is at resistance and consolidating. The RSI has worked off an overbought condition and the MACD is flat. A push over that resistance is a trigger to participate in more upside.....

ARRIS, Ticker: $ARRS

ARRIS, $ARRS, crept up to a high in December. A small pullback was bought and it rose to the high again to start January. But then it fell back further, confirming a double top and continuing lower. It spiked lower to touch the 200 day SMA January 31st and has stopped falling since. Friday it took a step higher out of consolidation. The RSI is knocking on the mid line and the MACD is about to cross up. Look for follow through to the upside to participate.....

BorgWarner, Ticker: $BWA

BorgWarner, $BWA, went through a long consolidation in the fall, not seeing any of the rise that most stocks felt following the election. That changed in December though as it started higher, rising 10% in less than a week. Since that jump it has consolidated again in a triangle. It ended last week touching the top of the triangle with the RSI rising and bullish and the MACD trying to cross up. Look for a push through the top of the triangle to participate higher.....

Lockheed Martin, Ticker: $LMT

Lockheed Martin, $LMT, had a strong trend higher end in August. The pullback found support at the 200 day SMA in October and it reversed higher. That move back up made a higher high as it stalled in November. It consolidated there for a couple of weeks and then pulled back again, this time to the 100 day SMA. It had been consolidating in a range over that for 2 and a half months until pushing higher Friday. The RSI is rising in the bullish zone and the MACD is crossed up, positive and rising. Look for follow through to participate higher.....

Nasdaq, Ticker: $NDAQ

Nasdaq, $NDAQ, broke above consolidation in July and rose to a high in August. A shallow pullback and retest of the high that failed led to a double top and move lower to a bottom in November retracing 78.6% of the move up. It confirmed a double bottom then and moved higher, retesting the August high again. The sharp pullback in a bull flag lasted until Friday when it broke the flag higher. The RSI is turning back higher in the bullish zone and the MACD is avoiding a cross down. Look for continuation to participate higher.....

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 February Options Expiration week sees the equity markets looking strong if not moving towards getting overheated.

Elsewhere look for Gold to continue in its uptrend while Crude Oil churns marking time. The US Dollar Index is looking stronger while US Treasuries consolidate in their downtrend. The Shanghai Composite and Emerging Markets both look strong and ready for more upside.

Volatility looks to remain at extremely low levels keeping the wind at the back of the equity index ETF's SPY, IWM and QQQ. Their charts all look great and ready for more upside in the longer timeframe but the SPY and QQQ are getting a bit hot in the short term and may need a rest. Use this information as you prepare for the coming week and trad'em well.

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5 Trade Ideas for Tuesday: American Tower, BorgWarner, Comerica, Dr. Pepper Snapple and MasterCard

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers

American Tower, Ticker: $AMT

American Tower, $AMT, started higher in February, stalling as it turned into April. The slowly rising consolidation brought it back in contact with its 20 day SMA, and then it pushed higher again at the end of June. The price peaked in late July and it pulled back slowly, hitting the 20 day SMA again 2 weeks ago. Now it is seeing a positive momentum divergence with the RSI pushing up through the mid line and the MACD about to cross up. Look for a push over the 20 day SMA to participate to the upside.....

BorgWarner, Ticker: $BWA

BorgWarner, $BWA, has been making a series of lower highs s it heads lower. But this time may be different. The bottom in July, at the same level as the February low could be making a double bottom. A move over the April high would confirm that. Until then though, the price is at resistance and has support from a rising and bullish RSI and positive MACD for a continued push higher. Look for a move over resistance to participate to the upside.....

Comerica, Ticker: $CMA

Comerica, $CMA, made a deep bottom with the market in February. But since then it made a strong move higher to a peak in June. A shorter pullback to a higher low found support at the end of June and it started higher again. Last week saw it back at the early June level and consolidating. The RSI is in the bullish zone and the MACD is flat, but positive. Look for a push to a new high to participate to the upside.....

Dr Pepper Snapple, Ticker: $DPS

Dr Pepper Snapple, $DPS, started higher off of a low in August 29015 and did not stop until year end. Since then it has moved mostly sideways but with a slight upward drift to it. Since April it has made a series of higher highs and higher lows. The move up Friday looks to confirm another higher low. Withe RSI turning up and the MACD about to cross up look for continuation to participate to the upside.....

Mastercard, Ticker: $MA

Mastercard, $MA, made a low in February then bounced to resistance below 100. A smaller pullback to a higher low at the start of July reversed higher and is now back at prior resistance. The RSI is in the bullish zone and rising and the MACD is crossing up, both supporting more upside. Look for a push through resistance to participate to the upside.....

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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 summer vacations end and the back to work mentality begins, sees the equity markets rested and ready.

Elsewhere look for Gold to continue higher short term while Crude Oil also bounces and moves higher. The US Dollar Index looks to move higher in the broad consolidation while US Treasuries consolidate in their uptrend. The Shanghai Composite looks to continue a digestive drift lower while Emerging Markets reverse back to the upside.

Volatility looks to continue abnormally low keeping the bias higher for the equity index ETF's SPY, IWM and QQQ. Their charts show the SPY and QQQ continuing in consolidation, with the IWM breaking to the upside, taking the lead. Use this information as you prepare for the coming week and trad'em well.

[dragonflycap]

5 Trade Ideas for Monday: BorgWarner, Cerner, International Paper, Nasdaq, and Overstock

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers

BorgWarner, Ticker: $BWA

BorgWarner, $BWA, fell from a plateau at 60 finding some support along the way at 43 before bottoming in January. The move off the low found resistance and created a higher low to start April, and is now moving higher again. The RSI is also rising and in the bullish zone and the MACD is about to cross up. A higher high would be a buy signal.

Cerner, Ticker: $CERN

Cerner, $CERN, has had a long run lower since peaking a year ago. It appears to have made a double bottom in February though and is heading higher. The RSI is bullish and rising while the MACD is rising too. Look at using the recent low as a stop and follow it higher. The higher low solidifies a trend reversal to the upside. A move over the falling trend resistance would add weight to that case.

International Paper, Ticker: $IP

International Paper, $IP, began a pullback in February 2015. That seems to have ended with a bottoming formation in in late January into February. The price came back to a resistance zone in mid March and retrenched slightly. Now it is testing that high again. The RSI is bullish and rising with the MACD about to cross up. Look for a new higher high to participate in the upside.

Nasdaq, Ticker: $NDAQ

Nasdaq, $NDAQ, has been moving higher in steps since September 2015. The last leg up, after break the consolidation zone in February, took the stock to a new all-time high. Since then it has pulled back, digesting the move, finding support at the 50 day SMA and bouncing. Friday saw it move out of the falling channel to the upside. The RSI is holding in the bullish zone while the MACD is starting to curl up towards a cross. Look for continuation to the upside to participate.

Overstock, Ticker: $OSTK

Overstock, $OSTK, rolled lower from a plateau at 22 starting in August last year. That continued until finding a bottom over the last part of January into February. Since then it jumped and has consolidated. The RSI is pushing back higher now and into the bullish zone while the MACD is crossing up. These support more upside as the price is at the top of the consolidation. Look for a move over that top to participate to the upside.

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 with April Expiry behind sees the Equity markets held strong and look to have started back higher.

Elsewhere look for Gold to consolidate while Crude Oil consolidates but with a bias to the upside. The US Dollar Index is testing the bottom of the consolidation range while US Treasuries look to move higher. The Shanghai Composite and Emerging Markets look strong and ready to go higher the with risk of Emerging Markets running in place a bit longer.

Volatility looks to remain subdued keeping the bias higher for the equity index ETF's SPY, IWM and QQQ. Their charts also look better to the upside now with the weekly charts looking strong. Use this information as you prepare for the coming week and trad'em well.

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