Top Trade Ideas for the Week of March 14, 2011: Bonus Idea

• Posted by Greg Harmon
• on March 13th, 2011

Here is your Bonus Idea with links to the full list:

ProShares UltraShort Financials, Ticker:$SKF

Leveraged ETF’s are usually best avoided and especially the inverse ones due to their built in decay mechanism. But for a short term trade they obviously offer more reward potential than the straight ETF’s. So for tonight’s Bonus Idea look at the Proshares UltraShort Financials ETF, SKF. This has been bumping against resistance at 59 for 3 weeks after coming off of a bottom. If it can get over 59.05 it has resistance at 60.5 and then 62.31 before the 100 day Simple Moving Average (SMA), currently at 64.44. The 50 day SMA can be used as a stop after entry, currently at 57.99, and then raise it to break even on a move to 60.50. The Relative Strength Index has been testing the mid line during the consolidation and could go either way. What puts it over the top as a long idea is the that the Moving Average Convergence Divergence (MACD) indicator is rising and the Bollinger band channel is starting to point higher and expanding.

The First 5

The Rest

(As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

After reviewing over 700 charts, these ideas were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which looks like further consolidation for Gold Crude Oil and Treasuries, before they can all start to move higher. The US Dollar Index looks to continue lower. The Shanghai Composite and Emerging markets also look to consolidate further with a bias to the upside longer term. The Volatility Index is looking tired after testing higher and may push lower again, but not move much from where it is now. The equity ETF’s SPY, IWM and QQQQ all look set up to continue lower, despite finishing better on Friday.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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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