Via TrueHoop, Chris Broussard says that the Rockets think they can move Tracy McGrady before the trade deadline, and that the top two destinations are Washington and Chicago.

Washington, which league executives believe is in cost-cutting mode after the Gilbert Arenas disaster, could have McGrady for a deal featuring Caron Butler and some expiring contracts, perhaps Mike Miller and Randy Foye.

Chicago, which has definite interest in McGrady, also has the combination of young talent and expiring contracts the Rockets are looking for. There is a Bulls player Houston covets, but it’s not clear who that is. Since the Rockets surely realize that Derrick Rose won’t be traded, logic suggests it’s Joakim Noah.

A package of Noah, Brad Miller and Jerome James (the latter two have expiring contracts) would work financially, but sources say the Bulls have no desire to part with Noah.

I’m not sure why any team would covet McGrady at this point. He hasn’t scored double figures in a game in more than 11 months and there’s no guarantee that he’s going to get back to his old self. I certainly wouldn’t advise trading a healthy Caron Butler or Joakim Noah for him.

The only upside is salary cap relief. If the Wizards just want to blow the team up, then this is one way to do it. McGrady’s deal is expiring, so whoever trades for him can really help their cap flexibility in the short term. But at this point, Butler is the Wizards’ best player and only has one year (at an affordable $10.5 million) left on his deal. Why trade him?

Then again, who knows what’s going on in the mind of Ernie Grunfeld.