Top Trade Ideas for the Week of July 25, 2011: The Best

After reviewing over 800 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which looks for the move higher in Gold and Crude Oil to continue. The US Dollar Index and US Treasuries conversely are set up to move lower, with a chance of Treasuries just running in place. The Shanghai Composite and Emerging Markets look as though they may test the top of their consolidation ranges. Volatility appears to remain muted and allow for the Equity Indexes SPY IWM and QQQ to continue to test higher and perhaps break their consolidation ranges, with the QQQ already making a new high. 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.

(As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

Here are the first 5 ideas for the week, to get you started:

Cameco, Ticker: $CCJ

Cameco, $CCJ, has been moving higher since mid June with a higher low put in mid July and now a new higher high breaking resistance at 27. It has a rising Relative Strength Index (RSI) and an increasing Moving Average Convergence Divergence (MACD) indicator supporting more upside. As it moves above impending upward cross of the 20 and 50 day Simple Moving Averages (SMA) it is heading to resistance at 28 with further resistance higher at 29 followed by 29.91 and then 31.

Dean Foods, Ticker: $DF

Dean Foods, $DF, moved higher off of the previous support at 11.25 and printed a shooting star on Friday. But with the rising RSI and MACD about to cross positive it looks to be set up to continue higher to resistance near the 50 day SMA at 12.62 with resistance higher at 13 and then 13.50. A move lower into the gap could be used as a stop loss.

Exact Sciences, Ticker: $EXAS

Exact Sciences, $EXAS, moved higher out of a channel and then pulled back to the previous high at 8.00 before the latest move higher. It is now approaching resistance at the previous high at 9.25from earlier this month as well as October 2010. If it can get over 9.25 it has a Measured Move (MM) to 10.25. The rising RSI and the MACD crossing positive both support a further move up, and with short interest over 15% it is likely to trigger a shot covering squeeze if it can get going.

Flotek Industries, Ticker: $FTK

Flotek Industries, $FTK, moved over the previous high at 10.25 which was resistance from September 2008 this past week. If it can hold over 10.25 then it can continue to resistance at 13.71 through a MM at 12. The short interest is high at over 15% so a continued move higher could trigger a short covering squeeze. The MACD supports more upside as does the RSI, but the RSI is now in the watch carefully zone.

Salix Pharmaceuticals, Ticker: $SLXP

Salix Pharmaceuticals, $SLXP, is moving to resistance from May at 41.30 off of a higher low. It has support higher from a rising RSI and a increasing MACD. If it can get over 41.30 it has resistance next at 43.50 followed by 45.25, 47 and then 49, It is susceptible to a short squeeze with over 10% short interest as well.

Up Next: The Rest

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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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