Eli Lilly, $LLY, comes into the week after breaking a long consolidation channel. Last week it broke above 800 and held ending the nearly 4 month consolidation. The Bollinger Bands® have shifted higher with the RSI rising in the bullish zone and the MACD positive and climbing. There is no resistance above 820. Support comes lower at 800 and 784 then 765 and 750 before 733 and 724. Short interest is low under 1%. The stock pays a dividend with an annual yield of 0.64% and has traded ex-dividend since May 15th. 

The company is expected to report earnings next on August 8th. The June options chain shows biggest open interest at the 750 put strike and the 850 then 900 call strikes. In the July chain open interest builds from 830 to 700 on the put side and is spread from 750 to 900, biggest at 860, on the call side. Finally, the August chain shows a large slug of open interest at the 700 put strike and the 820 call.

Eli Lilly, Ticker: $LLY

Trade Idea 1: Buy the stock on a move over 820 with a stop at 790.

Trade Idea 2: Buy the stock on a move over 820 and add a June 800/780 Put Spread ($9.65) while selling the July 880 Call ($9.25).

Trade Idea 3: Buy the June/August 850 Call Calendar ($23.85) and sell the July 750 Puts ($8.10).

Trade Idea 4: Buy the August 760/820/880 Call Spread Risk Reversal ($2.00).

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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 unofficial start of summer Monday and just 4 trading days left in May, saw equity markets were mixed with tech strong, large caps flat and small caps lower.

Elsewhere look for Gold to continue to consolidate in the uptrend while Crude Oil resumes a short term downtrend. The US Dollar Index may resume the short term move lower while US Treasuries remain in a downtrend. The Shanghai Composite looks to pause in the short term move higher while Emerging Markets may be confirming a failed break out higher.

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

First Solar, $FSLR, comes into the week in consolidation under the 200 day SMA after pulling back from a double top at the beginning of the year. It has an RSI in the bullish zone and a MACD positive. Look for a push over resistance to participate…

Gamestop, $GME, comes into the week breaking short term resistance. It has an RSI in the bullish zone and the MACD positive. Look for continuation to participate…

Interactive Brokers, $IBKR, comes into the week rounding up from a shallow pullback. It has an RSI in the bullish zone and a MACD positive. Look for continuation higher to participate…

Illumina, $ILMN, comes into the week breaking short term resistance. It has an RSI rising into the bullish zone with the MACD positive. Look for continuation to participate…

Lilly, $LLY, comes into the week approaching resistance. It has an RSI rising into the bullish zone and a MACD negative. Look for a push over resistance 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 month of April, including Chairman Powell’s last FOMC meeting, in the books saw equities continue to show strength driving to new all-time highs for the third 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 near $100/bbl. The US Dollar Index looks to continue to drift in consolidation, this time to the downside, 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 2025 top and a new 11 year high while Emerging Markets push to new highs in their uptrend.

Eli Lilly Purchases Ventyx Biosciences for $1.2 billion. Ventyx Biosciences is advancing a gallimaufry of treatments. Including but not limited to, oral therapies for inflammatory bowel diseases. They have a drug in a mid-stage trial targeting a cardiovascular condition. Eli Lilly’s ticker symbol LLY will absorb the outstanding shares of Ventyx Biosciences for $14 per share. This deal will…

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

Bank of America, $BAC, comes into the week breaking to a new all-time high. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…

Johnson & Johnson, $JNJ, comes into the week also breaking to a new all-time high. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…

Lilly, $LLY, comes into the week rounding up from a pullback. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…

Progressive, $PGR, comes into the week breaking resistance. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…

Walmart, $WMT, comes into the week breaking to a new all-time high. It has a RSI in the bullish zone with the MACD positive. 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 December FOMC meeting in the books and ahead of the non-farm payroll and CPI reports next week, saw equity markets show strength moving higher until profit taking Friday.

Elsewhere, look for Gold to continue the uptrend and challenge the all-time high while Crude Oil holds lower in consolidation. The US Dollar Index continues the short term drift to the downside in consolidation while US Treasuries continue in consolidation and looking better lower. The Shanghai Composite looks to continue the pause in the uptrend after some digestion from the 10 year highs while Emerging Markets hold up in their uptrend.

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

BP, $BP, comes into the week consolidating under resistance. It has a RSI flat in the bullish zone with the MACD positive and rising. Look for a push over resistance to participate…

JP Morgan, $JPM, comes into the week rounding out of a pullback. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…

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

Lockheed Martin, $LMT, comes into the week rounding out of a pullback. It has a RSI at the midline with the MACD positive. Look for continuation to participate…

Wells Fargo, $WFC, comes into the week pressing against resistance. It has a RSI in the bullish zone with the MACD positive. Look for a push through resistance 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 following the FOMC meeting and Powell’s unexpected caution that a December rate cut was not inevitable, equity markets brushed it aside and focused on the good earnings reports to hold at all-time highs.

Elsewhere, look for Gold to continue the uptrend with some short term consolidation while Crude Oil moves lower again in consolidation. The US Dollar Index continues to drift to the upside consolidation rounding out a bottom, while US Treasuries hold at the breakout higher in their consolidation, continuing to tease of an intermediate term reversal higher. The Shanghai Composite looks to continue the uptrend at 10 year highs while Emerging Markets also continue their uptrend at 4 year highs.

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

Analog Devices, Ticker: $ADI

Analog Devices, $ADI, comes into the week approaching support. It has a RSI dipping into the bearish zone with the MACD negative. Look for a break of support to participate…..

Broadcom, Ticker: $AVGO

Broadcom, $AVGO, comes into the week approaching support. It has a RSI in the bearish zone with the MACD negative. Look for ap drop through support to participate…..

Fedex, Ticker: $FDX

Fedex, $FDX, comes into the week possibly reversing higher. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…..

Lilly, Ticker: $LLY

Lilly, $LLY, comes into the week at support. It has a RSI in the bearish zone with the MACD negative. Look for a push through support to participate…..

Prudential, Ticker: $PRU

Prudential, $PRU, comes into the week reversing higher. It has a RSI at the midline with the MACD negative but curling up. 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 April options expiry in the books, equity markets finished the week black and blue after taking a beating.

Elsewhere look for Gold to continue its consolidation at all-time highs in the uptrend while Crude Oil pulls back in its uptrend. The US Dollar Index continues to drift to the upside while US Treasuries pullback in their downtrend. The Shanghai Composite looks to continue the consolidation in its short term uptrend while Emerging Markets drop in broad consolidation.

Eli Lilly, $LLY, comes into the week approaching the all-time high set 2 weeks ago. It has a RSI holding in the bullish zone with the MACD leveling after a pullback and positive. There is no resistance above 644. Support lower sits at 621 and 603. Short interest is low under 1%.  The stock pays a dividend with an annual yield of 0.81% and will start trading ex-dividend February 14th. The company is expected to report earnings next on February 6th. 

The February 9 Expiry options chain suggest a move of about $43 between now and expiry, or 6.7%. The February chain shows biggest open interest at the 600 strike put then 550 and 580. On the call side it is biggest at the 620 strike but closely followed by 600 and 650. The March chain has open interest spread from 550 to 600 on the put side and from 600 to 700 on the call side. April options have biggest open interest at the 570 put and 700 call strikes.

Eli Lilly, Ticker: $LLY

Trade Idea 1: Buy the stock on a move over 645 with a stop at 620.

Trade Idea 2: Buy the stock on a move over 645 and add a February 9 Expiry 625/595 Put Spread ($9.50) while selling the February 9 Expiry 675 Call (8.50).

Trade Idea 3: Buy the February/March 680 Call Calendar ($6.10) and sell the February 590 Put ($5.85).

Trade Idea 4: Buy the April 590/650/700 Call Spread Risk Reversal ($4.20).

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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 just 3 trading days left in January, equity markets look ready to finish the month higher.

Elsewhere look for Gold to continue its pullback while Crude Oil reverses higher. The US Dollar Index looks to drift sideways in consolidation while US Treasuries continue their downtrend. The Shanghai Composite looks to extend the bounce to the upside while Emerging Markets continue in consolidation.

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

ATI, Ticker: $ATI

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

Crowdstrike, Ticker: $CRWD

Crowdstrike, $CRWD, comes into the week moving toward resistance. It has a RSI in the bullish zone with the MACD curling up and positive. Look for a push over resistance to participate…..

Deere, Ticker: $DE

Deere, $DE, comes into the week at support. It has a RSI in the bearish zone with the MACD negative. Look for a beak through support to participate…..

Hartford Financial Services, Ticker: $HIG

Hartford Financial Services, $HIG, comes into the week at support. It has a RSI in the bearish zone with the MACD negative. Look for a drop through support to participate…..

Lilly, Ticker: $LLY

Lilly, $LLY, comes into the week pulling back to support. It has a RSI in the bearish zone with the MACD falling. Look for a drop through support 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 in the books, saw equity markets continue to show weakness.

Elsewhere look for Gold to continue its short term trend lower while Crude Oil may consolidate in its uptrend. The US Dollar Index continues to trend to the upside while US Treasuries trend lower. The Shanghai Composite looks to continue the slow drift lower while Emerging Markets consolidate in a broad range.