Top 10 Trade Ideas for the Week of September 27, 2010

After looking at over 500 charts and posting my thoughts on many of them, I have found some good setups for the week. This week’s list contains 10 long ideas with 1 bonus short setup. These were selected and should be viewed in the context of the broad market trend, reviewed Friday, which looks to bring stronger prices for Gold again and more flogging for the US Dollar Index. US Treasury Bonds seem to change direction with changes in sentiment and Oil looks to be stagnating. The relatively low and stable volatility index combined with that weaker dollar create a fertile environment for stocks to continue higher. Sector analysis showed that the most bullish sectors were Materials, Consumer Staples and Health Care and some of the weakest are Energy and Financial’s, bringing into question how long a rally can continue without their participation, I detailed this in my review Saturday.

Here are the top ten for the week in alphabetical order:

1. Compania De Minas Buenaventura, Ticker: BVN

BVN has put in a one month flag after jumping higher. If it can break above 42.25 the target would be 46.25, approximately the same $4 move that preceded the flag. Support is nearby at 41 below the flag. The rising Simple Moving Averages (SMA’s) add a positive bias.

2. Blackstone Group, Ticker: BX
Blackstone has broken a long term support resistance area at 11.30 and now headed to test 11.70 support/resistance from May, July and August. If it can get through 11.70 then the next resistance is at 12.09, the 200 day SMA, and then 13 from early May. The Moving Average Convergence Divergence (MACD) is pointing higher as is the Relative Strength Index (RSI), adding to the bullish sentiment.

3. Dendreon, Ticker: DNDN
Dendreon has flagged for the entire month after rising through the 100 day SMA. The flag is tightening now and if it can get through 43 then there is some resistance at 44 but then can rise to 48 without much impedance. There is also support below the flag at 40 and then the 100 day SMA.

4. Ford, Ticker: F
Ford is in a symmetrical triangle and testing the top rail. Should it break out higher it can run to resistance at 13.10 and then 14.50 and the pattern target of about 15. Support is nearby at 12.18-.25. The RSI is rising and the MACD is positive. Wait for a breakout to be confirmed.

5. Melco Crown Entertainment, Ticker: MPEL
MPEL broke above the triangle/wedge at the beginning of the month moved higher but has been flagging for about two weeks. If it can get through 5 then there is resistance higher at 5.70 followed by 6.5 and then 7.25. Support is at the bottom of the flag at 4.80 and 4.35 below.

6. Morgan Stanley, Ticker: MS
Morgan Stanley bounced off of the support rail of the symmetrical triangle Thursday and now looks to head towards the top. Resistance can be found at 26.03-.27, the 100 and 50 day SMA’s, and then 27.69 where the 200 day SMA intersects the resistance rail of the triangle. Support is very near below at 24.83.

7. Mindspeed Technologies, Ticker: MSPD
Mindspeed broke it’s down channel and then all of its SMA’s and ran to resistance at 9.45. Since it has retested the 100 day SMA and held now moving higher. The RSI ad MACD are turning and it now looks to retest 9.45. There is resistance on the way at 8.70 to get through as well.

8. Nanometrics, Ticker: NANO
Nanometrics broke out of its symmetrical triangle and has been flagging between 13 and 14.50. If it can break through 14.50 it can rise to the target of the pattern at 17.50. It is interesting now because the MACD is turning up with the fast indicator about to cross above the slower, and the RSI is pointing higher. Now is the time.

9. Perrigo, Ticker: PRGO
Perrigo is breaking higher out of a consolidation channel between 53.69 and 64.60 that it has been in for about 6 months. The move that brought it to that channel was a 13 point run, so the target for this move would be about 77. The MACD indicator is increasing and the RSI, although high, is pointing higher.Also the 50 day SMA is now pushing higher through the 100 day SMA adding to the bullish case.

10. Solarfun Power, Ticker: SOLF
Solarfun Power broke out of a large symmetrical triangle rested in another smaller symmetrical triangle and is now moving higher. The target from the initial triangle was 13.50, and from the second 13. Both will act as resistance. Support can be found at 12. The MACD is decreasing so beware of some downside.

Bonus Idea: Whirlpool, Ticker: WHR

The only short idea this week. Whirlpool has been in a downward channel and tested and rejected at 50 day SMA near the top rail on Friday. There is support at 75 with potential to 71 if it gets through and then 67.87. Resistance is nearby at 79.66-80.

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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