Top Trade Ideas for the Week of December 5, 2011: The Rest
- Posted by Greg Harmon
- on December 4th, 2011
Here are the Rest of the Top 10:
Arrow Electronics, Ticker: $ARW
Arrow Electronics, $ARW, is approaching long term support/resistance at 38.00. As it arrives there the Relative Strength Index (RSI) is bullish and trending higher and the Moving Average Convergence Divergence (MACD) indicator is crossing positive, also supporting more upside. A break of resistance higher has a good prospect of reaching the July highs.
Corn Products International, Ticker: $CPO
Corn Products International, $CPO, is in a bull flag and looks to soon be testing the historically significant level at 53. As it approaches resistance the RSI has caught itself at the mid line and has moved back higher, remaining bullish. The MACD has been trending back to zero and is close to a positive cross. A break of the flag higher has a target of 55 and up through resistance finds more room to run higher.
Hudson City Bancorp, Ticker: $HCBK
Hudson City Bancorp, $HCBK, has been in a long decline all year. But recent strength suggest is may be ready to move higher out of a bottoming process. The RSI has been trending steeply higher and is near bullish territory and the MACD has just crossed positive, both supporting more upside. A move over resistance at 6.15 starts the process higher towards the plateau at 8.00.
KB Home, Ticker: $KBH
KB Home, $KBH, is making a Triple Top at 8.00 after printing a bullish Three Advancing White Soldiers pattern. As it arrives the RSI is trending higher and bullish and the MACD has just crossed positive, both supporting more upside. It also may get an upside push from short covering, as it has short interest over 20%, if it can get through resistance.
Salix Pharmaceuticals, Ticker: $SLXP
Salix Pharmaceuticals, $SLXP, broke higher Tuesday and has consolidated, building a bull flag, since. The MACD is positive and increasing and the RSI is bullish, but a bit elevated in the low 70′s but not extreme. It may take a few days to continue to consolidate the move but a break over the bull flag at 44 has a target on a measured move at 53. It has also had high short interest at over 12%.
Up Next: Bonus Idea
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After reviewing over 900 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 looked heading into next week very strong, despite the pullback Friday. Gold and Crude oil both are poised to move higher with a chance that Gold consolidates its gains. The US Dollar and US Treasuries are still in uptrends but facing support levels nearby that could change the trend. The Shanghai Composite looks very broken while Emerging Markets are ready to continue higher. Volatility looks to remain in a trend lower but may consolidate. All this leads to an environment for the Equity Index ETF’s SPY, IWM and QQQ to continue higher. News may again provide exogenous shocks that the charts do not read, but this may show up in the US Dollar and US Treasuries first. Keep watching them as the captains steering the ship. Use this information as you prepare for the coming week and 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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