Top Trade Ideas for the Week of December 10, 2012: The Rest

Here are the Rest of the Top 10:

Abaxis, Ticker: $ABAX

Abaxis, $ABAX, is testing channel resistance after breaking above the descending triangle, retesting the breakout and holding. A break above it triggers a Measured move higher to 42.30 consistent with the target from the triangle break. The Relative Strength Index (RSI) is bullish and rising with a Moving Average Convergence Divergence indicator (MACD) that is positive. Both support a further run higher.

Aetna, Ticker: $AET

Aetna, $AET, is back at the important 45 level as resistance, coming from a higher low. It also has a rising and bullish RSI with a MACD that is positive and growing to support more upside and a possible push through resistance. A break above continues towards the Measured Move higher at 48.30 with a gap fill at 48.75.

Agrium, Ticker: $AGU

Agrium, $AGU, is building a bull flag in consolidation between 99.25 and 103. The RSI is giving no clue as it runs along the mid line and the MACD is positive but stalled. There are gaps in both directions and it seems prudent to look both ways on this one.

Kansas City Southern, Ticker: $KSU

Kansas City Southern, $KSU, is is pushing against previous resistance at 80 from a higher low. It is also carrying a Measured Move higher to 83.20, near the prior double top. The rising RSI is on the verge of moving into bullish territory and the MACD is positive and growing, both supporting further upside.

Lorillard, Ticker: $LO

Lorillard, $LO, came off of a bottoming process around 111 and is consolidating in a bull flag. The Measured Move on a break of the flag higher takes it to 131. It has support for more upside from a bullish and rising RSI and a MACD that is positive and averting a cross to negative.

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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 next week sees the markets are slowing but positive. Gold looks to consolidate the latest move lower while Crude Oil joins it to the downside. The US Dollar Index is bouncing higher while US Treasuries are set up to move lower or consolidate. The Shanghai Composite and Emerging Markets are biased to the upside with the Chinese market doing so in a downtrend while Emerging Markets are gaining strength. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The SPY and IWM seem strong while the QQQ is the weakest of the 3 and should be the one to watch on a rollover. Use this information as you prepare for the coming week and trade’m well.

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