Dragonfly Capital 5 Trade Ideas for Monday

• Posted by Greg Harmon
• on October 23rd, 2016

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Here are the Rest of the Top 10:

BP, Ticker: $BP

BP, $BP, has trend higher since finding support over the first two months of the year. It spike up in July only to fall back to the rising trend, finding support at the 100 day SMA. The latest push higher off of that 100 day SMA stopped just shy of the July peak but then only pulled back a small amount before revering higher. A higher low. Friday saw a push to the upside out of consolidation. The RSI is now in the bullish zone and the MACD is flat after a small pullback. Look for continuation higher to participate to the upside…..

Blackstone, Ticker: $BX

Blackstone, $BX, ran up over its 200 day SMA in August and stayed there for a month. From there it fell back though, unable to hold bullish. It seems to have found a bottom last week though, and turned back higher Friday. The RSI also turned up, out of oversold territory as the MACD is about to cross up. Look for continuation Monday to participate to the upside…..

Nordstrom, Ticker: $JWN

Nordstrom, $JWN, moved higher off of a base made through June and July. It pushed above the 200 day SMA in August and has held there since. It went sideways in consolidation until the end of September and then pushed higher. This move led to a pullback though in a bull flag. The price broke that flag to the upside Friday. The RSI is in the bullish zone and the MACD slowly falling but positive. Look for continuation to participate to the upside…..

Palo Alto Networks, Ticker: $PANW

Palo Alto Networks, $PANW, ran higher off of a bottom in June. It peaked in early October and started to pullback, finding support at its 50 day SMA. Friday saw a push higher off of that 50 day SMA and support for more from a rising RSI, with a MACD starting to slow its drop. Look for continuation Monday to participate to the upside…..

Potbelly, Ticker: $PBPB

Potbelly, $PBPB, had a strong move higher off of a bottom in February, peaking in April. It pulled back slight into May and then moved sideways in consolidation for 6 months. Friday changed that as it broke above the consolidation range. The RSI is in the bullish zone and the MACD rising, both supporting more upside. Look for follow through to participate to the 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 heading into the last week before the election sees equity markets looking stable long term and mixed in the short run with the QQQ leading and the SPY falling.

Elsewhere look for Gold to continue to press higher short term while Crude Oil continues to show its strength. The US Dollar Index is also strong moving higher while US Treasuries are bouncing short term in their downtrend. The Shanghai Composite continues to drift higher while Emerging Markets mark time in consolidation.

Volatility looks to remain subdued and falling, adding a tailwind to the equity index ETF’s SPY, IWM and QQQ. They are mixed short term though with the QQQ moving higher the IWM flat and the SPY at risk for more downside. Use this information as you prepare for the coming week and trad’em well.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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