Top Trade Ideas for the Week of February 17, 2015: The Rest

• Posted by Greg Harmon
• on February 16th, 2015

Here are the Rest of the Top 10:

Abbott Laboratories, Ticker: $ABT

Abbott Laboratories, $ABT, moved higher off of the October dip to a broad consolidation range. Currently it is testing the top of the range, and falling trend resistance. The RSI is moving higher and on the edge of a move into the bullish zone over 60 with a MACD moving higher, supporting more upside price action.

BioMarin Pharmaceutical, Ticker: $BMRN

BioMarin Pharmaceutical, $BMRN, has been trending higher since moving up off of a “W-V” pattern. Since January it has consolidated under resistance at the round number. Last week saw a move up off of the 50 day SMA to that resistance again. As it rises the RSI is also rising and in the bullish zone with a MACD about to give a buy signal on a cross up.

Cheniere, Ticker: $LNG

Cheniere, $LNG, had a long run higher before pulling back on a touch at 85. Since October that pullback has started to consolidate in a tightening symmetrical triangle. Friday left it near the top with a RSI tapping on the bullish zone over 60 while the MACD is crossed up and rising.

Rockwell Automation, Ticker: $ROK

Rockwell Automation, $ROK, finally filled the gap from July as it ran up to resistance Friday. As it moves higher this time both the RSI and MACD are rising, supporting a break higher. The Bollinger Bands® are rising as well, giving it room to run.

Tractor Supply, Ticker: $TSCO

Tractor Supply, $TSCO, drove higher off of the October bottom into a plateau around 78 in December, before moving up again. The last 2 weeks have seen consolidation under resistance at 83.70…..until it broke above on Friday. The RSI is bullish and moving higher with a MACD turning up after avoiding a cross down.

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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 Friday which, heading into a shortened February Options Expiration week sees the equity markets looking strong, breaking long consolidations to the upside.

Elsewhere look for Gold to lower in the short term in the longer consolidation while Crude Oil consolidates, and may be ready to reverse higher. The US Dollar Index looks to continue in a consolidation range while US Treasuries are biased lower. The Shanghai Composite looks to continue to pullback in the uptrend and Emerging Markets look to hold in the bear flag, and might prove it a reversal higher.

Volatility looks to remain subdued and now drifting lower, keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts all look strong on both the daily and weekly timeframes. If you had to pick a weakness then the gaps in the QQQ chart and move out of the Bollinger Bands® may signal short term exhaustion not seen in the SPY and IWM. Use this information as you prepare for the coming week and trad’em well.

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