Top Trade Ideas for the Week of November 19, 2012: The Rest
- Posted by Greg Harmon
- on November 18th, 2012
Here are the Rest of the Top 10:
Allstate, Ticker: $ALL
Allstate, $ALL, has been consolidating after a move lower from the high near 43 in October. Volume accelerated on the sell off and has since settled. The Relative Strength Index (RSI) made a new higher high on Friday and the Moving Average Convergence Divergence indicator (MACD) has been improving since the selloff stalled. These divergences support a shift. This may be ripe for a reversal higher.
Dilliards, Ticker: $DDS
Dilliards, $DDS, jumped higher after reporting earnings but has been pulling back since.in a bull flag. With the gap filled and the RSI strong it has potential for another move higher. The MACD move to end the week, widening to avert a cross is what makes it interesting now.
Express Scripts, Ticker: $ESRX
Express Scripts, $ESRX, got hammered the day that CVS Caremark reported two weeks ago, and slipped lower afterwards. With the Spinning Top candle Thursday confirmed higher Friday along with a RSI that has worked off the technically oversold condition and moving higher and a MACD that is improving, there are real signs of a reversal.
Perrigo, Ticker: $PRGO
Perrigo, $PRGO, took its hit with the market after the election and has been continuing lower. The RSI is very oversold and starting to improve with a MACD that is also improving. These support the price action turning, which with a Spinning Top Thursday confirming higher is a distinct possibility.
Sherwin Williams, Ticker: $SHW
Sherwin Williams, $SHW, has a 12 month run higher before pulling back after earnings. The announcement of an acquisition in Brazil popped it back higher last week after consolidation at the 100 day Simple Moving Average (SMA). That pop has been consolidating in a bull flag and a move over the top carries a Measured Move to 164. The rising RSI and positive and growing MACD 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 shortened Thanksgiving shows signs of a bottom, but not any reason to buy yet. Gold looks lower within the neutral long term channel while Crude Oil is biased higher in the consolidation. The US Dollar Index looks to continue higher while US Treasuries may be ready for a pullback in the uptrend. The Shanghai Composite and Emerging Markets are biased to the downside. Volatility looks to remain low with an upward bias keeping the bias lower for the equity index ETF’s SPY, IWM and QQQ, despite the potential reversal candles on their charts. Use this information as you prepare for the coming week and trade’m well.
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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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