Top Trade Ideas for the Week of June 4, 2012: The Rest

• Posted by Greg Harmon
• on June 3rd, 2012

Here are the Rest of the Top 10:

Baker Hughes, Ticker: $BHI

Baker Hughes, $BHI, has been bouncing along support at 40 for 2 months in what could be a bear flag. The Relative Strength Index (RSI) is heading lower and never made it into bullish territory, but the Moving Average Convergence Divergence (MACD) indicator is positive and holding. Conflicting views, bottoming or consolidating before another move lower. A move under 40 has a broad Measured Move to 32. It would take a move over last week’s high to trigger a long entry looking for a gap fill and touch of the 200 day Simple Moving Average (SMA). Watch both ways.

Express Scripts, Ticker: $ESRX

Express Scripts, $ESRX, is testing support of the low from mid May from a lower high. The RSI is bearish and heading lower with a MACD that is turning back negative. A break lower has potential down to 44.

Illinois Tool Works, Ticker: $ITW

Illinois Tool Works, $ITW, is pulling back from a top at 57.28, but printed a Hammer, potential reversal candle Friday. Confirmation by a move higher Monday sees resistance at 58. Failure has support at 53.40 before room to move lower. The RSI supports more downside but the MACD is positive, despite fading. Watch both ways.

Marriott International, Ticker: $MAR

Marriott International, $MAR, moved to the gap support on Friday on a long red Marubozu candle. Very bearish. The RSI is running lower and the MACD turned back negative. Both support a downside move.

NCR Corp, Ticker: $NCR

NCR Corp, $NCR, is back at major support from a higher top. A break lower has a gap to fill at 19. The RSI is bearish and pointing lower with a MACD that is negative and starting to grow more so.

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The Best

As always you can see details of individual charts and more on my StockTwits feed and on chartly.

After reviewing over 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 June the broad market looks weak. Gold looks better to the upside in the short run within the downtrend while Crude Oil looks to continue lower. The US Dollar Index and US Treasuries look strong to the upside with a chance of consolidation. The Shanghai Composite and Emerging Markets are set up to consolidate within a downward bias. Volatility looks to continue higher as well. These influencers create an environment where the index ETF’s SPY, IWM and QQQ, are set up to move lower and the charts agree. Consolidation by the US Dollar Index and Treasuries may forestall further declines in Equities. The QQQ looks the strongest of the Equity Indexes. Use this information as you prepare for the coming week and trade’m well.

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