Top Trade Ideas for the Week of July 23, 2012: The Rest
- Posted by Greg Harmon
- on July 22nd, 2012
Here are the Rest of the Top 10:
American Eagle Outfitters, Ticker: $AEO
American Eagle Outfitters, $AEO, is reaching a double top at 21 after following the 50 day Simple Moving Average (SMA) higher the last 4 months. The Relative Strength Index (RSI) is bullish but pointing lower with a Moving Average Convergence Divergence indicator (MACD) that is positive. Both would support further upside, as does the 3-box reversal Point and Figure (PnF) chart which has a price objective of 27. A move over 21 has a Measured Move higher to 23.50.
American Tower, Ticker: $AMT
American Tower, $AMT, has been marching higher, vacillating between the Upper Median Line and the Median Line of the bullish Andrew’s Pitchfork. The RSI is bullish and turning back higher with a MACD that is diverging negative. A second caution comes from the PnF that has the price objective met at 73.
Jefferies, Ticker: $JEF
Jefferies, $JEF, is testing downside support with RSI that is bearish and pointing lower and a MACD that is crossing to negative. Short interest at under 2% is not a worry to the downside and the PnF has a price objective of 4. The Measured Move out of consolidation lower takes it to 5.50.
Kansas City Southern, Ticker: $KSU
Kansas City Southern, $KSU, is building an ascending triangle and is up against resistance of the top rail. The RSI is on the verge of turning into bullish territory with a MACD that is positive. A breakout higher carries a pattern target of 79.10, near the May 1 high, and the PnF price objective at 84 reinforces that.
State Street, Ticker: $STT
State Street, $STT, broke minor consolidation lower and printed a bearish Marubozu candle Friday. The RSI is running lower in bearish territory with a MACD that is negative and growing. The PnF has a price objective of 33, aligning with a downside bias. The current leg down has a Measured Move to 38.
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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 next week Gold looks to continue to consolidate in the downtrend with Crude Oil looking higher with a chance of consolidation. The US Dollar Index is poised to continue higher with US Treasuries leading them up. The Shanghai Composite and Emerging Markets look biased to continue lower with Emerging Markets potentially consolidating. The Volatility Index points to continued lower fear allowing for the Equity Indexes, SPY, IWM and QQQ to move higher. The US Dollar and Treasuries suggest that this will not happen though. This correlation between Treasuries, the Dollar and Equities has been broken for a while but will likely reestablish with a divergence soon. The charts of the Equity Indexes show that they remain biased higher in what may be bear flags. Also presenting a cautious view. 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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