5 Trade Ideas for Monday: AIG, Danaher, DexCom, General Dynamics and Packaging Corp

• Posted by Greg Harmon
• on January 31st, 2021

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

AIG, Ticker: $AIG

AIG, $AIG, had a false breakout 2 weeks ago and then fell back. The trading adage goes ‘from false moves come fast moves’ and it has quickly dropped back to support. The RSI is dropping and on the edge of a move into the bearish zone with the MACD dropping and now negative. Look for a break of support to participate…..

Danaher, Ticker: $DHR

Danaher, $DHR, had a steady trend higher to a top in November. It has consolidated sideways from there since. It ended last week moving higher with the RSI rising and the MACD turning back up. Look for a push over resistance to participate…..

DexCom, Ticker: $DXCM

DexCom, $DXCM, peaked in August at what turned out to be the middle of a long rounding top. It has retraced 50% of the rise from the March low and is now moving higher. The RSI is rising as well with the MACD trying to cross up and positive. Look for a push over resistance to participate…..

General Dynamics, Ticker: $GD

General Dynamics, $GD, has moved sideways and tight to the SMA’s since July. The past 3 months the range has tightened with the RSI dropping toward the bearish zone and the MACD crossing down. Look for a drop under support to participate…..

Packaging Corp, Ticker: $PKG

Packaging Corp, $PKG, had a steady move higher from March to a top in January. It has been pulling back since. Friday saw it reverse to the upside though with the RSI moving back higher and the MACD starting to level. 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 after a Santa Claus Rally and the first 5 days of January going higher, failed to print the trifecta as the month of January ended lower.

Elsewhere look for Gold to continue its pullback while Crude Oil consolidates in the uptrend. The US Dollar Index consolidates in the downtrend while US Treasuries pause in their downtrend. The Shanghai Composite and Emerging Markets look to continue the pullbacks in their respective uptrends.

The Volatility Index is rising causing headwinds for the equity markets to the upside. Their charts remain strong on the longer timeframe but extended. On the shorter timeframe the SPY, the IWM and the QQQ are retrenching. There is no major damage yet, but the SPY leading to the downside might be the primary indicator next week. 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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