The markets and a new trade in Alcon (ACL)

OK so the markets do not know what to do - still. However with the NASDAQ breaking above resistance of 2325 if it holds above this we may see a continued bull trend, if not then a sideways trend will continue. I feel right now the NASDAQ is leading the way and it will depend on what it does the next couple of days.

OK since the markets are of no help I am going to place a trade on an individual stock that has not been seemingly affected by the market movements.

Alcon (ACL) - Bear Call Spread -

ACL is a fundamentally average stock in its sector currently in a downtrend closing today at 103.15. The 30 dma appears to be a good resistance line and currently it is around 110. With MACD dropping and STOCH staying in the sold region, no news to speak of other than to announce they will report earnings after the close on Monday April 24 which is after Friday expiration I will place a Bear Call Spread - selling the 110 calls for .70 or better and buying the 115 calls for .20 or lower. This gives a spread of .50 or 11% gain in 23 days.

Chart from BigCharts

There are some other riskier plays we could try but with the markets not truly settled in their direction the risks are higher than usual.

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