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

Here are the Rest of the Top 10:

Aflac, Ticker: $AFL

Aflac, $AFL, has leveled off into consolidation after trending higher since June. The Bollinger bands have been tightening throughout the consolidation foreboding a move. The Relative Strength Index (RSI) is bullish but running sideways with a Moving Average Convergence Divergence indicator (MACD) that is trending lower and crossed to negative. This happens often in a consolidation. Now that the 20 day Simple Moving Average (SMA) has risen to meet it the next move could be coming. A break over consolidation at 46.75 has a Measured Move to 51.50, still well short of the 3-box reversal Point and Figure chart (PnF) price objective at 63.

Allstate, Ticker: $ALL

Allstate, $ALL, is consolidating the move higher from the gap up in early in August. Flagging between 37 and 38.25 it has a Measured Move higher to 42 on a break higher. The RSI is bullish and starting to turn back higher with a MACD that has bottomed and is turning. The PnF price objective of 67 also points higher.

Louisiana Pacific, Ticker: $LPX

Louisiana Pacific, $LPX, is another bull flag, consolidating between 13 and 13.80. The RSI is bullish and the MACD has faded to a negative cross, common in flags. A move over the top of the flag carries a Measured Move higher to 17.15. High short interest at over 20% could also help it higher in a squeeze.

Plum Creek Timber, Ticker: $PCL

Plum Creek Timber, $PCL, is testing the neckline of a potential Inverse Head and Shoulders pattern that would carry a price objective of 47, well below the PnF price objective of 60. The bullish RSI and MACD that is flat-lined both support a move higher. Short interest at 5% might help it up as well.

Perkin Elmer, Ticker: $PKI

Perkin Elmer, $PKI, has been building a bull flag also, and started a break out of it higher on Friday. The RSI is bullish and turning higher with a MACD that bottomed and is now rising. The Measured Move higher takes it to 29 but the PnF suggest it will not stop there with a price objective of 49.50.

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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, as September begins looks for Gold and Crude Oil to move higher with a chance that Crude consolidates. The US Dollar Index looks to continue lower while US Treasuries are moving up. The Shanghai Composite and Emerging Markets look to continue their downside moves with the chance that Emerging Markets find support nearby. Volatility looks to remain subdued but drifting higher keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The SPY looks the most vulnerable of the three for a pullback and all three could easily continue sideways. Watch Treasuries, as their break higher would typically signal a pullback in Equities. 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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