Top Trade Ideas for the Week of May 13, 2013: The Rest

Here are the Rest of the Top 10:

American Axle & Manufacturing, Ticker: $AXL

American Axle & Manufacturing, $AXL, broke resistance and ran higher before consolidating in a bull flag. The Relative Strength Index (RSI) is bullish and working off a technically overbought condition with a Moving Average Convergence Divergence indicator (MACD) that is rising and at relatively high levels. It is extended from the 20 and 50 day Simple Moving Averages (SMA) as well. Short interest at about 15% makes it possible for a squeeze higher. Look both ways.

BB&T, Ticker: $BBT

BB&T, $BBT, is approaching resistance at 31.65 after a pullback below the bottom Bollinger band. The RSI is rising and in bullish territory with a MACD that is also rising, to support further upside.

GNC, Ticker: $GNC

GNC, $GNC, is building a bull flag at resistance after a move higher in steps off of the January 3rd low. The RSI and MACD are moving higher and bullish, both supporting a break higher. SHort interest is a bit over 10%. It is getting extended from the 50 day SMA though so keep both eyes open.

JA Solar, Ticker: $JASO

JA Solar, $JASO, is in the hot solar sector, but has a lot more room higher. Near resistance at 5.50, it has a RSI that is rising and bullish with a MACD that is also rising and averted a negative cross.

Red Hat, Ticker: $RHT

Red Hat, $RHT, is moving higher in a Crab formation with a Potential Reversal Zone at 57.91. The RSI is rising and bullish and the MACD is also rising, both supporting more upside if it can get through the 100 day SMA.

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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 we head into the options expiration week for May sees the equity markets remaining strong. Look for Gold to continue its correction while Crude Oil may consolidate with an upside bias. The US Dollar Index seems content to move sideways but now with a upward bias as US Treasuries move lower in the broad consolidation zone. The Shanghai Composite is building towards a break of consolidation higher while Emerging Markets look to pullback in their uptrend. Volatility looks to remain subdued keeping the wind at the backs of the equity index ETF’s SPY, IWM and QQQ, despite their moves to new highs. Their charts agree with a continued upward bias but with the IWM the strongest on the short term basis and the QQQ strongest on the intermediate term. Rotation into small caps may result. Use this information as you prepare for the coming week and trad’em 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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