Top Trade Ideas for the Week of October 10, 2011: Bonus Idea

• Posted by Greg Harmon
• on October 10th, 2011

Here is your Bonus Idea with links to the full Top Ten:

Exact Sciences, Ticker: $EXAS

Exact Sciences, $EXAS, is moving higher off of a double bottom near 6.00. It is now over teh 200 day Simple Moving Average (SMA) and has a Moving Average Convergence Divergence (MACD) indicator that is crossing positive and a Relative Strength Index (RSI) that is moving higher, over the mid line. It stalled Friday at the 50 day SMA, printing an Evening Star, a potential reversal candle if confirmed lower Monday. But if it can rise over 7.35 then it has resistance higher at 7.50 followed by 7.85 and 8.15. Using 7.05 as a stop, risking 20 cents, you could get long here for a potential ride higher. Short interest is high at over 10% so an move higher could be aided by a short squeeze.

The Best

The Rest

The Rest: Premium

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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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