5 Trade Ideas for Tuesday: Applied Materials, CME, General Dynamics, Kansas City Southern and PayPal

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

Applied Materials, Ticker: $AMAT

Applied Materials, $AMAT, pulled back to the 200 day SMA in in May and consolidated. It rose from there to a top in July before pulling back again. It has consolidated since under resistance. Friday it was back a resistance with the RSI rising toward the bullish zone and the MACD crossing up and about to turn positive. Look for a push over resistance to participate…..

CME, Ticker: $CME

CME, $CME, started higher in March and continued until a pause in June. A second pause in July was followed by another pullback and then a move up to the current consolidation. The range is tightening as the RSI holds in the bullish zone with the MACD flat but positive. Look for a push over resistance to participate…..

General Dynamics, Ticker: $GD

General Dynamics, $GD, made a bottom in December and then bounced with the market. It stalled into February and languished there 5 months, with 1 failed attempt to move higher. A move off of a May low found prior resistance and it is tightening the range against it. Friday it pushed over the top. The RSI is rising and bullish with the MACD moving higher and positive. Look for continuation to participate…..

Kansas City Southern, Ticker: $KSU

Kansas City Southern, $KSU, started higher from a bottom in December. It ran to a top in April and then paused. Since then it has pulled back to the 200 day SMA but mostly held in consolidation. Friday saw it rise to resistance. The RSI is rising at the edge of the bullish zone with the MACD positive and moving higher. Look for a push over resistance to participate…..

PayPal, Ticker: $PYPL

PayPal, $PYPL, started higher out of consolidation in December. It continued to a top in July before pulling back. The pullback found support just above the 200 day SMA and 2 weeks ago tried to start higher. Friday saw it back at resistance. The RSI is rising through the mid line with the MACD crossed up but still negative. Look for a push over resistance 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 as the books are closed on August sees Equity investors and traders are saying good riddance.

Elsewhere look for Gold to pause in its uptrend while Crude Oil works a short term bounce in its downtrend. The US Dollar Index continues to be strong while US Treasuries consolidate in their uptrend. The Shanghai Composite continues a short term move higher in the downtrend while Emerging Markets consolidate in the downtrend.

Volatility looks to remain slightly elevated keeping some pressure on the equity index ETF’s. The SPY and QQQ continue to look stronger than the IWM as they consolidate in a pullback while the IWM shows signs of leaking lower. 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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