Top Trade Ideas for the Week of September 22, 2014: The Rest

• Posted by Greg Harmon
• on September 21st, 2014

Here are the Rest of the Top 10:

Cognex, Ticker: $CGNX

Cognex, $CGNX, has been moving higher since mid-April, along the 50 day SMA. The price action since August has been a symmetrical triangle and it nearly tested both sides of it Friday. With a MACD crossing up and a RSI in the bullish zone favor an upside breakout.

Honeywell, Ticker: $HON

Honeywell, $HON, has been moving in a mainly sideways fashion since February. But the latest bounce off of the 200 day SMA in August had a brief pullback before heading higher again, with a Measured Move on an AB=CD pattern to 100. The rising and bullish RSI and the MACD crossed up and rising support continued upward price action.

IBM, Ticker: $IBM

IBM, $IBM, is testing resistance at the falling trend line. The price action here also had a run up form the 200 day SMA and pulled back before moving higher. The AB=CD target on this stock takes it to 200. The RSI and MACD are bullish and rising to support this move higher.

Oshkosh, Ticker: $OSK

Oshkosh, $OSK, got crushed in late July finding support at 45.25, where it had previous support in November 2013. Currently it is moving higher after making a higher low and the RSI is rising with the MACD leveling. These support continued upside, but watch the falling trend resistance a few bucks higher.

Visa, Ticker: $V

Visa, $V, has been moving in a long symmetrical triangle since topping in February. Most of the price action has been in the lower half of the triangle but it is now drifting higher as it nears the apex. The RSI and MACD have been moving sideways as this consolidation has been ongoing for such a long time.

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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 we close the books on the September Options cycle and move into Fall, sees the equity markets still looking strong but a bit tired. Elsewhere look for Gold to continue lower along with Crude Oil. The US Dollar Index continues to look strong while US Treasuries are bouncing in their downtrend. The Shanghai Composite is also strong and looks better to the upside while Emerging Markets are biased to the downside. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The SPY and QQQ look the strongest but on the weekly timeframe, with some cracks on the daily charts. The IWM looks weak in the short run and probably continues towards the bottom if its consolidation zone. Use this information as you prepare for the coming week and trad’em well.

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