5 Trade Ideas for Monday: American Express, eBay, Merck, Microsoft and Sherwin-Williams

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

American Express, Ticker: $AXP

American Express, $AXP, comes into the week breaking resistance. It has an RSI in the bullish zone and a MACD positive. Look for continuation to participate…

eBay, Ticker: $EBAY

eBay, $EBAY, comes into the week rounding up out of a pullback. It has an RSI rising in the bullish zone and a MACD positive.  Look for continuation to participate…

Merck, Ticker: $MRK

Merck, $MRK, comes into the week at resistance. It has an RSI in the bullish zone and a MACD positive. Look for a push over resistance to participate…

Microsoft, Ticker: $MSFT

Microsoft, $MSFT, comes into the week at short term resistance. It has an RSI at the midline with the MACD crossed up and negative. Look for a push over resistance to participate…

Sherwin-Williams, Ticker: $SHW

Sherwin-Williams, $SHW, comes into the moving above resistance. It has an RSI in the bullish zone with the MACD positive. Look for continuation to participate…

Up Next: Bonus Idea                                                                                        

The Best

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above.   

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 with the month of June and its non-farm payroll report in the rearview mirror, saw the high correlation of the equity market indexes may be starting to disconnect.

Elsewhere, look for Gold to continue a short term downtrend along with Crude Oil extending its downtrend. The US Dollar Index looks to continue flirt with a break of the 15 month range and morphing into an uptrend while US Treasuries continue to hold over support in consolidation. The Shanghai Composite looks to continue the consolidation in a slow drifting range higher while Emerging Markets pause and digest after a long run of new highs in their uptrend.

The Volatility Index looks to continue in the normal zone keeping at least a slight tailwind behind equities. Despite this the broad indexes have gone nowhere on the week. The charts of the SPY, the QQQ and the IWM continue to look strong on the longer timeframe with the IWM leading and the SPY and QQQ consolidating. On the shorter timeframe the SPY and the QQQ still have some work left in the short term bounce to prove the pullback is over. Making a new all-time high, or at least a move over the June high, with higher momentum readings would solidify that. The IWM, however, is looking strong, after making a new all-time high Tuesday. Use this information as you prepare for the coming week and trad’em well.