Top Trade Ideas for the Week of March 18, 2013: The Rest

• Posted by Greg Harmon
• on March 17th, 2013

Here are the Rest of the Top 10:

Beam, Ticker: $BEAM

Beam, $BEAM, went from being a possible short to a break out higher to end last week. The Measured move out of the Diamond Continuation takes it to 69. It has a rising and bullish Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that is moving back higher on the signal line to support further upside.

Baker Hughes, Ticker: $BHI

Baker Hughes, $BHI, broke up through the neckline of an Inverse head and Shoulders on Friday. The Price Objective takes to at least 55.70. It has support for continued movement higher from a bullish and rising RSI and a MACD that is moving higher on both the signal line and the histogram.

Corning, Ticker: $GLW

Corning, $GLW, is back at resistance at 13.00 from a higher low. It moved up to it Friday on better volume and has support for continued upside from a rising and bullish RSI and a MACD that is also rising, There is also a small Inverse head and Shoulders that would trigger through that resistance with a Price Objective of at least 14.30.

Morgan Stanley, Ticker: $MS

Diamonds are supposed to be rare but Morgan Stanley, $MS, is also in one and on the verge of a break out higher. A continued up move would target a price of 30.25. The RSI is rising and bullish and the MACD is starting to turn back higher. Both of those continuing would support further upside price action.

Vertex Pharmaceuticals, Ticker: $VRTX

Vertex Pharmaceuticals, $VRTX, is building a bull flag after a move higher out of the base at 46. A break of the flag higher carries a target of 58.50. The RSI is bullish and hugging the technically overbought level with a MACD that is rising on the signal line, both supporting continued upside movement.

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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 Saturday which, heading into next week the equity markets are becoming mixed. Outside influencers see Gold continuing to hold a range with an upside bias for any break out while Crude Oil slowly grinds higher. The US Dollar Index looks ready to pullback in the uptrend while US Treasuries are biased lower. The Shanghai Composite and Emerging Markets are biased to the downside in the near term. Volatility looks to remain non-existent keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their chats are a mixed bag with the IWM the strong est followed by the QQQ building potential energy and the SPY perhaps ready to pullback or consolidate. If the US Dollar Index and Treasuries continue lower this will be a big tailwind for Equities. Use this information as you prepare for the coming week and trad’em well.

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Dragonfly Capital Views Performance Through March 2013 Expiry

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