Top Trade Ideas for the Week of October 26, 2015: The Rest

• Posted by Greg Harmon
• on October 25th, 2015

Here are the Rest of the Top 10:

Broadcom, Ticker: $BRCM

Broadcom, $BRCM, had been moving higher off of an October 2014 low until spiked in May. That spike sold off making a low with the market in August. Now it has hit resistance and backed off to a higher low and is rising again toward resistance. The RSI is rising and in the bullish zone along with the MACD. Watch for a push through resistance.

CF Industries, Ticker: $CF

CF Industries, $CF, started lower in July in a falling wedge. These are often thought of as bullish, but it broke the wedge to the downside. It made a low at the end of September and consolidated a few days before a strong thrust higher. Now it is at resistance and making a series of higher lows. The RSI is rising and on the edge of a move into the bullish zone with the MACD rising.

DexCom, Ticker: $DXCM

DexCom, $DXCM, was a pharma favorite all of 2015 until the August meltdown. The stock quickly recovered making a new high before the pharma/biotech sell off of September brought it down 30%. It has bounced off of that and built a small bull flag. Friday saw it push through the top of that flag. The RSI is at the mid line after a bounce off of oversold levels as the MACD is crossed up and rising.

FirstMerit, Ticker: $FMER

FirstMerit, $FMER, ran higher to a peak in June. The pullback from there found a bottom with the market in August and has been consolidating since. Friday saw a push through the important 18.30 level and to the 200 day SMA. The RSI is moving into the bullish zone and the MACD is rising, both supporting continued upside.

JB Hunt Transport Services, Ticker: $JBHT

JB Hunt Transport Services, $JBHT, traveled lower in a falling channel until it pulled off that road to the downside when the market sank in August. Since making a low it has bounced in a wide range against resistance. It is back against resistance again and has support for a push through to the upside from the rising and bullish RSI and MACD.

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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 last week of October, sees the equity markets looking strong. Elsewhere look for Gold to continue lower in its longer term downtrend while Crude Oil heads lower in the short term. The US Dollar Index is breaking to the upside while US Treasuries are marking time sideways. The Shanghai Composite and Emerging Markets are biased to the upside with Emerging Markets at a major resistance level. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The SPY and QQQ had major moves and look set up to continue higher into next week with the IWM lagging and at resistance. Use this information as you prepare for the coming week and trad’em well.

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