Top Trade Ideas for the Week of October 5, 2015: The Rest

• Posted by Greg Harmon
• on October 4th, 2015

Here are the Rest of the Top 10:

DexCom, Ticker: $DXCM

DexCom, $DXCM, has been a long time winner, rising in a strong trend since breaking out of a triangle in November 2014. The stock started to stall, consolidating in mid August before falling with the broad market August 24th. It recovered from there and moved to a new high before dropping hard again with all of healthcare stocks. The 100 day SMA has acted as support on both falls and now the stock is consolidating under prior support, now resistance. Will it be a retest and failure to new lows or a reversal higher to new highs?

Fiserv, Ticker: $FISV

Fiserv, $FISV, has also been in a long rising trend. It fell with the market in August but has recovered and back in its rising channel. The RSI has remained bullish throughout this and the MACD is crossed up again. Both support more upside price action. Look at a move over the short term resistance as an entry trigger.

Ingredion, Ticker: $INGR

Ingredion, $INGR, pulled back from a high in August, finding support at 83. From there is consolidated and then jumped higher in mid September before a 61.8% retracement of the move up. Now rising again, it printed a near Marubozu candle Friday, very bullish, back to resistance. With the Bollinger Bands® opening up and the RSI bullish and rising along with bullish MACD, there is strong support for more upside price action.

Netflix, Ticker: $NFLX

Netflix, $NFLX, had a strong run higher form April to a peak in early August. It pulled back with the market and recovered, and it now settling into a tightening symmetrical triangle. The Bollinger Bands are squeezed and may be starting to open, allowing a move. This happens as the price action Friday takes it to the top of the triangle. The RSI is slowly trending higher and through the mid line with the MACD rising. Look for a break of the triangle to participate.

Valero Energy, Ticker: $VLO

Valero Energy, $VLO, is in the refining space, the only part of the oil business that has had a good run recently. It got hit in the August pullback though and found support at its 200 day SMA. That has been acting as support since with resistance above. The move up Friday to that resistance and over the 50 day SMA for the first time since August 22nd brings promise for more upside. The RSI is rising and the MACD going higher too,  in support.

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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 the first full week of October sees the indexes again have dodged a bullet and ended the week on strength.

Elsewhere look for Gold to continue to consolidate in its downtrend while Crude Oil consolidates in its downtrend. The US Dollar Index looks to mark time as it consolidates its move higher while US Treasuries are biased higher in the short term. The Shanghai Composite looks to continue to consolidate in its trend lower while Emerging Markets are biased to the upside in broad consolidation after their move lower.

Volatility looks to remain elevated but moving back toward normal levels easing the headwind for the equity index ETF’s SPY, IWM and QQQ. The indexes themselves all look good in the short term while they consolidate in the intermediate term. Use this information as you prepare for the coming week and trad’em 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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