- Posted by Greg Harmon on February 7th, 2016 at 2:40 pm
Here are the Rest of the Top 10:
JP Morgan, Ticker: $JPM
JP Morgan, $JPM, took a hard fall to start the year, dropping nearly 20%. Since then it found some support in mid January and has consolidated under the prior support area from September and October. As it consolidated the Bollinger Bands® are squeezing, often a precursor to a move, and the RSI is tapping against the mid line with a rising MACD. Look for a break over the January resistance to participate on the upside.
Norfolk Southern, Ticker: $NSC
Norfolk Southern, $NSC, jumped out of an ascending triangle in November. It exceeded the target move at 95 on a possible deal and the started back lower. Two weeks ago that trend down turned into a consolidation and is showing signs of a possible reversal now. The RSI is moving higher and the MACD is crossed up and rising. A positive momentum divergence. Look for price to follow, over resistance, to participate to the upside.
Procter & Gamble, Ticker: $PG
Procter & Gamble, $PG, broke above resistance in December. That break out failed at the July high and it pulled back. But in mid January it started moving higher again, clearing that December high last week. As it consolidates the RSI is bullish and the MACD is rising. Both support more upside. Look for a break of the consolidation to participate.
Raytheon, Ticker: $RTN
Raytheon, $RTN, had a strong trend higher begin in September. By late November it had stalled and started to consolidate. That turned into a pullback to the 100 day SMA before reversing back higher. Now it is back at the all-time high and has support to push for more from a bullish RSI and a rising MACD. Look for a new high to participate to the upside.
Valeant Pharmaceuticals, Ticker: $VRX
Valeant Pharmaceuticals, $VRX, fell nearly 75% from its August high over 260 to the low near 69. Since then it has steadied and now made a higher low. The last month has seen tight consolidation as the Bollinger Bands® squeeze in. With the RSI pressing up through the mid line and the MACD, look for that break to happen to the upside. Join on a move over resistance.
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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. The groundhog did not see his shadow, so an early Spring is on the way, but it does not seem like winter is over for equity markets. Heading into the second week of February equity markets are weak and looking to get worse.
Elsewhere look for Gold to continue in its uptrend while Crude Oil consolidates broadly in the downtrend. The US Dollar Index looks better to the downside in consolidation in the short run while US Treasuries are continue higher. The Shanghai Composite and Emerging Markets look to continue their consolidation in their downtrends net week.
Volatility looks to remain elevated keeping the bias lower for the equity index ETF’s SPY, IWM and QQQ. The indexes themselves all look weak and ready for more downside with the strongest, the SPY, trying to consolidate in its downtrend. Use this information as you prepare for the coming week and trad’em well.
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SPY Trends and Influencers February 6, 2016
Posted by Greg Harmon on February 6th, 2016 at 9:02 am
A weekly excerpt from the Macro Review analysis sent to subscribers on 10 markets and two timeframes. Last week’s review of the macro market indicators […]
How this week’s Top 10 Performed, February 5, 2016
Posted by Greg Harmon on February 5th, 2016 at 5:04 pm
Every month following Options Expiration I post performance metrics of the Dragonfly Capital Model Portfolio. This includes all trades that I entered over time. What […]
Are You Riding on the Gold Bandwagon?
Posted by Greg Harmon on February 5th, 2016 at 7:53 am
Everyone loves Gold now. It is always the case. Gold has had a massive run higher, rising about 10% since the December lows. It has […]
Comfortable Trade Ideas for HanesBrands Earnings
Posted by Greg Harmon on February 4th, 2016 at 12:22 pm
HanesBrands, $HBI, stock looks as comfortable as Michael Jordan does wearing the company’s clothes the past 6 months. Of the last 129 trading days it […]
The Transports are Still Looking for Fuel
Posted by Greg Harmon on February 4th, 2016 at 8:37 am
The Dow Transportation Index started a long trip higher at the end of 2012. It reached the top of the mountain at the end of […]
Time to Make the Dough(nuts) – Earnings Trades for Dunkin’ Brands
Posted by Greg Harmon on February 3rd, 2016 at 12:57 pm
Dunkin’ Brands, $DNKN, started falling in July from a top at 56. The price action lower has been in a expanding wedge. It looked to […]
Sentiment is Driving the “Bear Market”
Posted by Greg Harmon on February 3rd, 2016 at 8:19 am
Sentiment drives markets, there is no doubt about that. But I often wonder what is it that drives sentiment. There are many good reasoned answers […]
Yahoo Earnings Trade Ideas
Posted by Greg Harmon on February 2nd, 2016 at 3:09 pm
Yahoo!, $YHOO, topped in November 2014 at 52 and has been falling since. At the time it was the source of debate about its valuation […]
Touch and Go with the Nikkei
Posted by Greg Harmon on February 2nd, 2016 at 8:10 am
My daughter plays basketball. Like most kids her age she bounces around the house all morning before it is time to go Saturday morning. Jumping […]
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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