Top Trade Ideas for the Week of January 20, 2015: The Rest

• Posted by Greg Harmon
• on January 18th, 2015

Here are the Rest of the Top 10:

Allstate, Ticker: $ALL

Allstate, $ALL, has been consolidating in an ascending triangle since mid December. It has exhibited relative strength while the broader market has pulled back. The RSI has held over the mid line, and bullish while the MACD is trying to turn up, which would trigger a buy signal.

Ashland, Ticker: $ASH

Ashland, $ASH, is also moving in an ascending triangle and showing relative strength. Its RSI is in the bullish zone and rising while the MACD is falling. Look for a move out of the triangle as an entry.

Anheuser-Busch InBev, Ticker: $BUD

Anheuser-Busch InBev, $BUD, is moving back to resistance in a ‘W’ like move or two ‘V’s if you like. A move over the top gives it free air above. The momentum indicators are signaling positive. The RSI is bullish and rising while the MACD crossed up last week and is rising.

Express Scripts, Ticker: $ESRX

Express Scripts, $ESRX, has an ascending triangle in its chart as well. Following a large move higher from mid October this consolidation is welcome. The RSI is in the bullish zone and the MACD trying to move up for a cross. Watch for a price move over the resistance zone and MACD cross to enter long.

Northrop Grumman, Ticker: $NOC

Northrop Grumman, $NOC, rose from the October low and is consolidating under resistance now. The RSI is bullish and strong while the MACD is flat as it hits the trigger line. A break higher triggers a long entry and continuation.

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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, heading into another holiday shortened week, the equity markets still look a bit vulnerable to more pullback.

Elsewhere look for Gold to continue its uptrend while Crude Oil consolidates in the downtrend. The US Dollar Index looks to continue higher along with US Treasuries. The Shanghai Composite looks to resume its move higher despite being very overbought while Emerging Markets continue to consolidate in a bear flag in the downtrend.

Volatility looks to remain low but creeping higher making a headwind for the equity index ETF’s SPY, IWM and QQQ. Their charts show differing reactions with the IWM consolidating in the top of its year long range, and the SPY trying to reverse a pullback, while the QQQ looks biased lower in the short run. Longer term the SPY and QQQ remain in uptrends while the IWM consolidates. Use this information as you prepare for the coming week and trad’em well.

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