Top Trade Ideas for the Week of December 31, 2012: The Rest
- Posted by Greg Harmon
- on December 30th, 2012
Here are the Rest of the Top 10:
AsiaInfo-Linkage, Ticker: $ASIA
AsiaInfo-Linkage, $ASIA, fell from a top at the 200 day Simple Moving Average (SMA) at the beginning of the month finding a bottom last week at 10.35. Now through the 50 day SMA and moving higher it has support from a rising Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that has crossed to positive.
CIT Group, Ticker: $CIT
CIT Group, $CIT, is consolidating in a bull flag between 38 and 38.60 after rising from a base at 37. A move over 38.60 carries a Measured Move higher to 40.20, closing the gap. The RSI is trending higher slowly but not yest in bullish territory with a MACD that is flat and may be crossing to negative. This happens in bull flags so it could reverse back higher on a break.
Dresser-Rand, Ticker: $DRC
Dresser-Rand, $DRC, is approaching a triple top at 56. as it arrives there the RSI is in bullish territory and the MACD is positive. These support further upside price movement.
Express Scripts, Ticker: $ESRX
Express Scripts, $ESRX, gapped lower November 6th and continued down to 50. After retesting the breakdown area near 55.60 it is tailing lower again. The RSI also failed just over the mid line and is heading lower with a MACD that is about to cross to negative. Both support further downside movement.
Olympic Steel, Ticker: $ZEUS
Olympic Steel, $ZEUS, is building a bull flag with a Hammer Friday, to emphasize a potential break out higher. That would carry a Measured Move higher to 25.40. The RSI is bullish and has worked off the technically overbought condition with a MACD that is positive but fading.
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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 the last day of 2012 approaches sees Gold continuing to look lower while Crude Oil shows an upside trend continuing. The US Dollar Index and US Treasuries seem content to move sideways with US Treasuries now biased higher and the Dollar Index lower. The Shanghai Composite and Emerging Markets are both biased to the upside with risk of Emerging Markets consolidating further first. Volatility has jumped and is looking to relatively higher than recently switching the bias for the equity index ETF’s SPY, IWM and QQQ, lower, with the QQQ looking the worst and IWM the strongest. 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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