Top Trade Ideas for the Week of February 11, 2013: The Rest
- Posted by Greg Harmon
- on February 10th, 2013
Here are the Rest of the Top 10:
Abbott Laboratories, Ticker: $ABT
Abbott Laboratories, $ABT, is making a double top at 34.50, printing a Shooting Star candle Friday. This needs confirmation but may be a reversal candle. Either way it sets up a trade opportunity, long on a break out higher and short on a failure.
Altera, Ticker: $ALTR
Altera, $ALTR, is approaching a short term triple top, moving higher off of the 50 day Simple Moving Average (SMA) and with support from a Golden Cross. The Relative Strength Index (RSI) is bullish and rising and the Moving Average Convergence Divergence indicator (MACD) is crossing to positive, both supporting further upside movement.
Celgene, Ticker: $CELG
Celgene, $CELG, has been building a bull flag after a strong move higher from the 50 day SMA at year end. The Bollinger bands are squeezing hard now and it has worked off a technically overbought condition on the RSI with a MACD histogram that has stopped moving negative and may be improving. The possibility of a break out very soon is increasing. The Measured Move higher takes it to 120 and failure would target the gap lower.
Dollar Tree, Ticker: $DLTR
Dollar Tree, $DLTR, is also approaching a triple top at the falling 50 day SMA. The RSI has been trending higher and the MACD is near flat with a slight upside bias, giving the potential breakout added support.
Mentor Graphics, Ticker: $MENT
Mentor Graphics, $MENT, is consolidating against resistance as well. It also has support for a continued move higher from a rising and bullish RSI and a flat MACD. The short term Measured Move on a break of consolidation higher takes it to 18.55.
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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 February Options Expiration week the bull market continues to chug along and get stronger from some perspectives. Gold looks to continue in its tightening range awaiting a break out while Crude Oil pulls back in the uptrend. The US Dollar Index is looking to test the upside of the broad range while US Treasuries are biased lower. The Shanghai Composite is biased to the upside in its consolidation while Emerging Markets are testing the limits of how long a bull flag can run before turning into a downtrend. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts agree with new 5 year highs for the SPY and all time highs for the IWM but most interesting a breakout of the range higher for the QQQ. It is unusual, but not unprecedented, for the Dollar Index to continue higher as Equities rise so keep an eye on that as your risk for a reversal. Use this information as you prepare for the coming week and trad’em 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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