Top Trade Ideas for the Week of October 10, 2011: The Rest

• Posted by Greg Harmon
• on October 9th, 2011

Here are the Rest of the Top 10:

Ariad Pharmaceuticals, Ticker: $ARIA

Ariad Pharmaceuticals, $ARIA, is showing signs of tiring, with topping tails and a doji print Friday at the falling 50 day Simple Moving Average. The Relative Strength Index (RSI) is stalling at the mid line, still bearish, but the Moving Average Convergence Divergence (MACD) indicator is improving. Expect this to move lower, but use caution as the short interest is high at over 10%.

Biogen Idec, Ticker: $BIIB

Biogen Idec, $BIIB, is also showing signs of exhaustion as it moves higher, with a doji Friday at resistance from earlier in September at the 100 area. The RSI has never moved over 60 on this run and the MACD is trolling near the zero line. This looks to head lower, but again be cautious as short interest is over 15%.

Choice Hotels International, Ticker: $CHH

Choice Hotels International, $CHH, is starting to build a bull flag after breaking out of a channel/descending triangle. The RSI is higher and on the verge of bullish territory, and the MACD is increasing. A move over 33 takes this much higher.

The Fresh Market, Ticker: $TFM

The Fresh Market, $TFM, broke above the descending triangle top rail in late August and has been using it as rough support, less 50 cents, since. It has also been pounding against the resistance higher at 40.40 several times since the breakout. The RI has remained in bullish territory and the MACD has been flat but is crossing positive. Over 40.40 it has room to run.

Tesla Motors, Ticker: $TSLA

Tesla Motors, $TSLA, printed a Tweezers Top at 27.60 with the RSI turning and the MACD positive but very low. This is an indication of a move lower. Short interest is high at what appears to 100% of free float so use caution.

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After reviewing over 900 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 Saturday which looks for Gold and Crude Oil to continue in their downward trends with the possibility that Gold continues its flag. The US Dollar Index looks ready to continue higher while Treasuries could pullback further in their up trend. The Shanghai Composite will reopen after a week off and biased to continue lower along with Emerging Markets. Volatility should remain elevated, and the Equity Index ETF’s SPY, IWM and QQQ continue to be biased lower morphing from their bear flags into downward channels. Use this information as you prepare for the coming week and trade’m 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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