Top Trade Ideas for the Week of January 26, 2015: The Rest

• Posted by Greg Harmon
• on January 25th, 2015

Here are the Rest of the Top 10:

CNOOC, Ticker: $CEO

CNOOC, $CEO, sold off with the Crude Oil decline, but began a consolidation process in December. It ended the week pressing against downtrending resistance and the 20 day SMA, unable to move over it. But the MACD and RSI are diverging higher. The RSI is making a new 4 month high as it moves over the mid line. Watch for price to follow higher.

Catamaran, Ticker: $CTRX

Catamaran, $CTRX, moved higher off of a bottom in October into a consolidation zone that started in early December. Friday left the price testing resistance for the second time. With the MACD crossing up last week as a buy signal, and the RSI rising watch for a break of resistance higher.

KKR, Ticker: $KKR

KKR, $KKR, has made a Champagne Coupe Bottom™, finding itself at the top of the rim Friday. As it arrives there the RSI is rising and strong while the MACD is crossing up, giving a buy signal.

Lear, Ticker: $LEA

Lear, $LEA, rose from the October low into a consolidating pattern as well. With a rising trend support, the ascending triangle is building now as price sits at resistance Friday. The RSI is rising and bullish while the MACD is crossing up. You know the drill.

Stamps.com, Ticker: $STMP

Stamps.com, $STMP, has run through a long Cup and Handle pattern through 2014. Friday showed sings of the price breaking the handle to the upside. This came with the RSI bouncing off the lower limit of the bullish zone and the MACD turning, and heading for a bullish cross up.

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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 the last week of January sees the equity markets churning, but at different paces. Elsewhere look for Gold to continue in its uptrend while Crude Oil continues lower. The US Dollar Index also looks to continue higher while US Treasuries consolidate in the uptrend. The Shanghai Composite is taking a breather in its uptrend but Emerging Markets are breaking higher, at least in the short term.

Volatility looks to remain low but drifting gently higher over time slowing the wind at the back of the equity market. The equity index ETF’s are reacting differently to these factors. The IWM is continuing its consolidation but with sings it may break higher, while the SPY consolidates in its uptrend, perhaps passing the baton to the small caps. The QQQ has been acting mostly like the SPY but looks much stronger, with a possible break of a bull flag higher brewing. Use this information as you prepare for the coming week and trad’em well.

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