Top Trade Ideas for the Week of June 27, 2011: The Rest
- Posted by Greg Harmon
- on June 26th, 2011
Here are the Rest of the Top 10:
Cash America International, Ticker: $CSH
Cash America has been in a rising channel since September and is now testing the top. If it can get over the top at 54.70 then it has a target of 60. The Relative Strength Index (RSI) is strong and high and the Moving Average Convergence Divergence (MACD) indicator is increasing, but it did print a doji, signalling indecision, on Friday. If it fails at the top rail then support can be found at 51 and then 49.20 lower. Short interest is high at over 10% in this name so be careful if you play it short.
Lear Corp, Ticker: $LEA
Lear has been consolidating in a range between 47.70 and 51 since mid May. If it can get over 51 then it has resistance at 52 followed by 53, 55 and 56 higher. The MACD has crossed and is increasing and the RSI is rising off of the mid line, supporting an upside move.
Schlumberger Ltd, Ticker: $SLB
Schlumberger is on the edge of being a great short. It is sitting on trendline support at the 200 day Simple Moving Average (SMA). If it breaks support and falls under 80.40 then the next level of support is at 75.50 followed by 72.10. The falling RSI and MACD that has crossed negative support more downside as do the rolling SMA’s.
St. Jude Medical, Ticker: $STJ
St. Jude Medical confirmed the next step lower Friday, after a breakdown from the 100 day SMA on Thursday. If it gets under 46 then support is next found at 44 and then 42.90 lower. The falling RSI and negative and growing MACD support more downside.
The Bancorp, Ticker: $TBBK
The Bancorp is rising up towards trend line resistance at 10.33. If it can get through this time then it would have an upside target of 11.50. With the RSI rising and the MACD increasing a move higher is supported.
Up Next: Bonus Idea
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 to bring more red to Gold and Crude Oil, although likely at a slower pace in Crude. The US Dollar Index seems headed to a test with the 3 year trend line while US Treasuries look to continue to consolidate, but with an upward bias. The Shanghai Composite looks higher if only to retest the weekly breakdown level while Emerging Markets consolidate, with a chance of more downside. Volatility looks to continue to drift higher with a spike a possible signal of a further downside move in the Equity Index ETF’s. Otherwise they look to continue to consolidate but with the SPY and QQQ biased to the downside while the IWM is biased higher. 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.blog comments powered by Disqus
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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