Top Trade Ideas for the Week of June 20, 2011: Bonus Idea

Here is your Bonus Idea with links to the full Top 10:

Great Lakes Dredge & Dock, Ticker: $GLDD

Great Lakes Dredge & Dock has been in a down trend since February but began basing and found a bottom last week. The Relative Strength Index (RSI) is now rising and the Moving Average Convergence Divergence (MACD) indicator has crossed positive. After testing higher on Friday if it can now get over 5.75 and hold it has resistance at 6, followed by 6.25, and then 6.5 and 7. Short interest is over 5% and about 5 days of volume to cover so it could also benefit from a short squeeze.

The Best

The Rest

After reviewing over 800 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 Saturday which looks for Gold ($GLD) to drift higher while Crude Oil ($USO) heads lower. The US Dollar Index ($USDX) is primed to continue its upside move while Treasuries ($TLT) consolidate with an upside bias. Both the Shanghai Composite ($SSEC) and Emerging Markets ($EEM) should see continued weakness. The Volatility Index ($VIX) will be important next week and is poised to move higher. US Equity Index ETF’s, are mixed but generally biased to the downside. The $QQQ is the worst looking with the $SPY mixed but biased lower and the $IWM looking as it may consolidate. Watch for a move in the Volatility Index over 24 to trigger coordination among the Index ETF’s and a move lower. Consolidation in the weaker Indexes should bring the Volatility Index back under 20 and could lead to a trend change. Use this information to understand the major trend and how it may be influenced as you prepare for the coming week ahead. Trade’m well.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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