Top Trade Ideas for the Week of September 2, 2014: The Rest

• Posted by Greg Harmon
• on September 1st, 2014

Here are the Rest of the Top 10:

American International Group, Ticker: $AIG

American International Group, $AIG, had been in a rising trend until it pulled back in late July. The ‘V’ shaped recovery has it back at the highs and consolidating. The RSI is in the bullish zone and the MACD rising, in support of more upside price action.

Apache, Ticker: $APA

Apache, $APA, had a strong move higher from April to the consolidation that began in late June. The leg higher off of 98 that began mid August has now consolidated and a bullish engulfing candle Friday could trigger it higher. There is support for more upside from the RSI that held in the bullish zone in the pullback and the rising MACD that crossed higher last week.

Hess, Ticker: $HES

Hess, $HES, rose out of a base around 80 and has been consolidating near 100 since July. The action Friday suggests it may be ready for the next leg higher, as it printed a long bullish candle closing near the high. Both the rising RSI and MACD support more upside and a break higher.

Starwood Hotels & Resorts, Ticker: $HOT

Starwood Hotels & Resorts, $HOT, had a choppy run higher to 85 from 2013 until mid July. The pullback that followed found the 200 day SMA and then launched it higher. Now it is consolidating at the prior high with RSI that is strong and bullish and a MACD that is positive. Friday’s long bullish candle following the one Thursday suggest a break may come as soon as Monday

St. Jude Medical, Ticker: $STJ

St. Jude Medical, $STJ, also had a long run higher from the beginning of 2013 before choppy consolidation between 60 and 70 over 2014. Closer in the pullback that began in July brought it back to the 200 day SMA and it has been slowly moving higher since. Friday’s candle higher out of the series of 7 doji candles, confirming a NR7 move higher, is supported by a rising RSI and MACD for more upside.

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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 Friday which, as the market heads into September sees equities are strong but have had strong moves already. Elsewhere look for Gold to continue to hold around 1300 with a downward bias while Crude Oil has a short term bias higher in its consolidation. The US Dollar Index and US Treasuries are biased higher. The Shanghai Composite looks to continue to pullback in its recent rally while Emerging Markets are biased to the upside with the risk of consolidation at resistance continuing. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The IWM looks strongest and this may be a sign of rotation into it from the SPY and QQQ. The QQQ looks a bit better than the SPY having rested all week, where the SPY has some signs of short term exhaustion. But the trend of SPY and QQQ both remain higher. Use this information as you prepare for the coming week and trad’em well.

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