Top Trade Ideas for the Week of March 21, 2011: The First 5

After reviewing over 700 charts, I have found some good setups for the week. This week’s list contains the first five below, all short ideas (well one can go both ways), to get you started early. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which looks for Gold, Crude Oil and US Treasuries to move higher, with the US Dollar Index continuing lower. The Shanghai Composite and Emerging Markets appear to need more time to consolidate with China biased higher and Emerging markets lower. The Volatility Index looks to continue higher and make for an environment where US Equity ETF’s, SPY, IWM and QQQQ, will continue lower for the week if not right from Monday.

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

Here are the first 5 ideas for the week, to get you started:

Harte-Hanks, Ticker:$HHS

Harte-Hanks has not been talked about for a while. It is currently in a bear flag just over the 200 day Simple Moving Average (SMA) at 11.78. Selling volume increased Friday and the Relative Strength Index (RSI) is bearish with the Moving Average Convergence Divergence (MACD) indicator looking lower. If it loses support at 11.78 then there is support lower at 11.41 and 10.75 before 10.25 and finally 9.50. Short interest is high at 10 days volume so be vigilant and start with a stop at 12.25

Jazz Pharmaceuticals, Ticker:$JAZZ

Jazz Pharmaceuticals has been technically overbought on the daily chart for most of the month of March with an RSI over 75. Recently the MACD has been turning lower and the last few days have printed some topping candles. With a stop at 29.50 this looks good short to support lower at 26. This also has high short interest at 4 days volume so do not ‘set it and forget it’ or you may find a gap over your stop.

Mastercard, Ticker:$MA

Mastercard is in a descending triangle, and nearing 2/3 of the way to the apex, the sweet spot for a breakout/down. As it moves there the RSI is falling through 50 into bearish territory and the MACD looks to be growing more negative. If it gets under 239 it is a good short to support at 233 followed by 230 and 225. A stop can be placed near the base of the triangle if you wait for a break to enter or now at 243. Short interest is not a factor on this name.

NYSE Euronext, Ticker:$NYX

NYSE Euronext is heading lower, with both the RSI and MACD supporting more downside. If it gets under 34 then there is support next at 32.80 followed by 31.90. A stop can be placed at 34.33. Short interest does not play a role here either.

Illumina, Ticker:$ILMN

Illumina is sitting on support of the extended trend line it broke above in October. If it holds above the trend line then look for a bounce to a target of 66. If it falls through then look for it to move all the way to the bottom of the channel at 55.20. There is then support at the top of the gap at 54. The RSI has hit the technically oversold level and the MACD has leveled. Both could go either way. So be ready for what it gives you. The short interest on this stock is relatively high at 5.5 days volume to cover so keep a tight watch if the short side is given to you.

Up Next: The Rest

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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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