Top Trade Ideas for the Week of December 1, 2014: The Rest

• Posted by Greg Harmon
• on November 30th, 2014

Here are the Rest of the Top 10:

Cerner, Ticker: $CERN

Cerner, $CERN, has been moving steadily higher since making a low in May. At the end of October it broke above the February high and has been consolidating there since, with the Bollinger bands now tightening.

Capital One Financial, Ticker: $COF

Capital One Financial, $COF, had one failed attempt to move over the resistance zone in September. It is back at that zone though, from a higher low and with the Bollinger bands tightening. Both the RSI and MACD are also rising , supporting a break higher.

Consolidated Edison, Ticker: $ED

Consolidated Edison, $ED, broke higher from a slow rising consolidation in October. Since the start of November it consolidated that move in a falling wedge, before breaking that to the upside Friday. The RSI is turning back up and held in the bullish zone on the pullback, while the MACD is leveling after its pullback.

Jazz Pharmaceuticals, Ticker: $JAZZ

Jazz Pharmaceuticals, $JAZZ, is breaking a year long ascending triangle pattern to the upside. The target on the pattern break takes the price to 240 over time. The RSI is rising and in the bullish zone while the MACD is about to cross up, giving a buy signal.

Johnson Controls, Ticker: $JCI

Johnson Controls, JCI, is approaching a triple top as the Bollinger bands are tightening for a price move. The RSI is pulling back from an overbought condition while the MACD has crossed down, both support a reversal lower. Watch this both ways, for a break out or a failure.

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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 calendar turns to December sees the Equity markets showing signs of divergence or rotation but with continued strength. Elsewhere look for Gold to continue lower, resuming its downtrend while Crude Oil also continues lower. The US Dollar Index and US Treasuries look strong though and are biased to continue to the upside. The Shanghai Composite is also strong and looks to continue higher while Emerging Markets are consolidating in what may be a bearish pattern. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts show continued strength in the QQQ, with the SPY a bit stretched short term but looking good on the intermediate timeframe, while the IWM continues to consolidate in the longer consolidation range. Use this information as you prepare for the coming week and trad’em well.

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