BJ’s Wholesale Club, $BJ, comes into the week pulling back from a top. This would be a higher high without a higher high in momentum measured by the RSI, a negative momentum divergence. The RSI is in the bullish zone but falling with the MACD stalling and positive. There is support lower at 112.50 and 108 then 105 and 102 before 100 and 98. Resistance is at 119. Short interest is moderate at 4.9%. The stock does not pay a dividend.

The company is expected to report earnings next on May 21st. The April options chain has open interest spread from 115 to 95 and is biggest at 110 and 100 on the put side. On the call side it is biggest at 115 then 110. In the May chain open interest is biggest at 105 then 115 on the put side and at 115 and 120 on the call side. Finally, in the August chain, the first to cover the earnings report, open interest is biggest at 110 on the put side and light on the call side, spread from 105 to 120.

Trade Idea 1: Sell the stock short on a move under 112 with a stop at 115.

Trade Idea 2: Sell the stock short on a move under 112 and add an April 115/120 Call Spread ($2.90) while selling the May 100 Put ($1.30).

Trade Idea 3: Sell an April/May 105 Put Calendar ($1.70, sell April, buy May).

Trade Idea 4: Buy the May 110/105/100 Put Butterfly (1.45).

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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 release of the first round of tariffs since 1930, saw equity markets reacted with their worst week (2 days) since March of 2020.

Elsewhere look for Gold to continue to hold over $3000/oz while Crude Oil collapses into a downtrend. The US Dollar Index continues to drift to the downside in consolidation while US Treasuries continue in consolidation. The Shanghai Composite looks to continue to consolidate the short term move higher while Emerging Markets may be entering a new downtrend.

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

BJ’s Wholesale Club, Ticker: $BJ

BJ’s Wholesale Club, $BJ, comes into the week at support. The RSI is falling in the bullish zone with the MACD positive but dropping. Look for a drop through support to participate…..

Cullen/Frost Bankers, Ticker: $CFR

Cullen/Frost Bankers, $CFR, comes into the week sitting on support. It has a RSI dropping in the bullish zone with the MACD shifting to negative. Look for a break of support to participate…..

Cummins, Ticker: $CMI

Cummins, $CMI, comes into the week on support. The RSI is falling in the bearish zone with the MACD negative. Look for a break of support to participate…..

Coterra Energy, Ticker: $CTRA

Coterra Energy, $CTRA, comes into the week at support. It has a RSI in the bearish zone and the MACD negative. Look for a break of support to participate…..

MongoDB, Ticker: $MDB

MongoDB, $MDB, comes into the week in consolidation. It has a RSI coming out of oversold and a MACD crossing up but negative. Look for a move out of consolidation 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 3rd Quarter wrapped up, equity markets showed further weakness ending at or below the prior lows of the year.

Elsewhere look for Gold to continue its pullback while Crude Oil continues to move lower. The US Dollar Index continues to trend to the upside while US Treasuries pullback in their downtrend. The Shanghai Composite looks to continue the move lower while Emerging Markets accelerate to the downside.