Top Trade Ideas for the Week of July 2, 2012: The Rest

• Posted by Greg Harmon
• on July 1st, 2012

Here are the Rest of the Top 10:

Allstate, Ticker: $ALL

Allstate, $ALL, broke above resistance Friday with support for more upside from a rising and bullish Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that is crossing positive. Hop aboard.

Chart Industries, Ticker: $GTLS

Chart Industries, $GTLS, is moving through resistance since early May with support of a rising and bullish RSI and a positive and growing MACD, after making a double bottom on the 200 day Simple Moving Average (SMA). It has a large short interest at over 14% that could help fuel a move higher.

L-3 Communications Holdings, Ticker: $LLL

L-3 Communications Holdings, $LLL, is approaching resistance and triple top at 74.25. A break higher carries a Measured Move to 78.25. The rising and bullish RSI and the MACD that is positive and growing after averting a cross down, both support a move higher.

United Natural Foods, Ticker: $UNFI

United Natural Foods, $UNFI, is making a new high as it continues to trend higher. It has support for a continued move higher from a RSI that has been bullish since December and shows no signs of changing and MACD that is positive and growing. Not exciting but steady rising. A longer term play.

Union Pacific, Ticker: $UNP

Union Pacific, $UNP, leapt higher back above the 115.50 support/resistance area Friday with a long white candle ending the week back at the recent high. A move to a new high carries with it a target on a Measured Move to 128. The rising and bullish RSI combined with the MACD that remains positive after averting a cross down both support more upside.

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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 Saturday which, heading into the back half of the year we start with a holiday shortened week and a market with some upside momentum. Crude Oil looks to continue the move higher while Gold may consolidate the gains within a down channel. The US Dollar Index looks to continue its pullback in the uptrend with Treasuries continuing to consolidate with an upside bias. The Shanghai Composite may take a breather in its downtrend while Emerging Markets consolidate in their downtrend, determining if they want to reverse it. Volatility looks in control and the combination creates an environment where the Equity Index ETF’s are biased higher. A reversal by the US Dollar Index or a move higher by Treasuries will likely negate this. The charts of the Equity Indexes generally agree and point higher with the IWM the strongest followed by the SPY and then the QQQ. 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.

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