5 Trade Ideas for Monday: American Express, McDonald’s, Northern Trust, Union Pacific and Vulcan Materials

• Posted by Greg Harmon
• on August 9th, 2020

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

American Express, Ticker: $AXP

American Express, $AXP, found support in March and then chopped around for 2 months. it started higher in late May but stalled at the 200 day SMA and pulled back. It has been consolidating at a higher low since. Friday it broke higher. The RSI is rising into the bullish zone and the MACD lifting and positive. Look for continuation to participate…..

McDonald’s, Ticker: $MCD

McDonald’s, $MCD, started higher off of a March low and paused at the end of April. After a minor pullback it started higher again, reaching resistance as it passed the 200 day SMA. It touched that resistance again in July and broke through to end last week. The RSI is rising and bullish with the MACD moving higher. Look for continuation to participate…..

Northern Trust, Ticker: $NTRS

Northern Trust, $NTRS, bottomed in March and started higher again. It paused in April and fell back to a higher low in May. Another leg up made a higher high and then it fell back to a higher low again in July. Now it is at short term resistance with the RSI rising into the bullish zone and the MACD moving up and positive. Look for a push over resistance to participate…..

Union Pacific, Ticker: $UNP

Union Pacific, $UNP, fell hard and fast to a bottom in March before a strong bounce. After reaching the 20 day SMA it started to chop higher and reached a top in June. A pullback to a higher low at the 200 day SMA held as support and it has been there since. It ended last week rising to resistance with the RSI moving up in the bullish zone and the MACD crossing up and positive. Look for a push over resistance to participate…..

Vulcan Materials, Ticker: $VMC

Vulcan Materials, $VMC, bounced off of a low in March to a lower high in April. It pulled back from there to a higher low though and then continued to move higher to resistance at the 200 day SMA in June. It has consolidated under resistance since until breaking higher Friday. The RSI rising in the bullish zone with the MACD crossed and rising. Look for continuation to participate…..

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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 with the first week of August in the books, saw the dog days of summer were nowhere to be found. Instead equities are finding renewed strength as they moved higher.

Elsewhere look for Gold to continue higher while Crude Oil consolidates in a slow drift up. The US Dollar Index looks to consolidate the move lower while US Treasuries pause in their uptrend. The Shanghai Composite looks to continue the short term move higher while Emerging Markets continue to consolidate.

The Volatility Index looks to continue to drift lower making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe. On the shorter timeframe both the IWM and SPY also look strong and ready for more upside. The QQQ, with profit taking, may see some rotation out into the other 2 ETF’s. 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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