Top Trade Ideas for the Week of October 3, 2016: The Rest

• Posted by Greg Harmon
• on October 2nd, 2016

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers

Here are the Rest of the Top 10:

Alcoa, Ticker: $AA

Alcoa, $AA, finally found a bottom in January and rose from the depths. It broke above its 200 day SMA in March and then consolidated there for 4 months, with a brief failed attempt higher. July saw another attempt to move up fail and pullback to the 200 day SMA gain. Now it has bounced off of the 200 day SMA and is back at falling resistance, pressing on the 50 day SMA. The RSI is rising and heading to the bullish zone while the MACD is crossed up and rising. Look for a break over the trend line to participate to the upside…..

Illumina, Ticker: $ILMN

Illumina, $ILMN, has bounced around a lot but since April has been heading higher. It paused a bit in August but then started again higher as the chart printed a Golden Cross, with the 50 day SMA crossing up through the 200 day SMA in early September. The last week has seen consolidation again, with a RSI that is holding in the bullish zone and a MACD that is flat. Look for a new high to participate to the upside…..

Morgan Stanley, Ticker: $MS

Morgan Stanley, $MS, moved higher off of a post Brexit low in June. It crossed its 200 day SMA in July and then paused and pulled back to the 200 day SMA before making a second move higher to the current consolidation. The RSI is holding over the mid line in this pause and the MACD remains in positive territory, keeping the bullish stance. Look for a push over resistance to participate to the upside…..

Charles Schwab, Ticker: $SCHW

Charles Schwab, $SCHW, bounced off of a bottom in February to a top in June. It pulled back from there to a higher low in into July and then started back up again. It stalled to start September, but at a higher high, and has consolidated for a month. Friday saw it press back to the top of the consolidation with the RSI turning up in the bullish zone and the MACD about to cross up. Look for a push through resistance to participate to the upside…..

Tiffany, Ticker: $TIF

Tiffany, $TIF, started a pullback in April, finally finding support in June 23% lower. It bounced from there back to the April high in late August. In that process it moved above its 200 day SMA. It quickly fell back to retest that 200 day SMA and moved back higher, off of a higher low. It stalled again just under the prior high and consolidated, but with a Golden Cross printing last week. The RSI is holding in the bullish zone and turned up while the MACD is slowly falling but positive. Look for a push over resistance to participate to the upside…..

Up Next: Bonus Idea

The Best

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above.

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 4th Quarter sees the Equity markets looking strong with the QQQ leading the way.

Elsewhere look for Gold to pullback short term while Crude Oil continues to the upside. The US Dollar Index looks to remain asleep moving sideways while US Treasuries are biased lower. The Shanghai Composite looks to continue the drift lower around 3000 while Emerging Markets consolidate.

Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts show strength in the QQQ leading higher, with the SPY just behind and the IWM taking a breather, the weakest of the bunch. Use this information as you prepare for the coming week and trad’em well.

Dragonfly Capital Sale is over today. Instead of the normal 10% off an Annual Subscription, you can get 20% off of the first year! That is only $499 for the first year! Don’t miss out. Sign up here.

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.

blog comments powered by Disqus