Top Trade Ideas for the Week of May 23, 2011: The Rest

• Posted by Greg Harmon
• on May 22nd, 2011

Here are the Rest of the Top 10:

American Tower, Ticker:$AMT

American Tower launch higher off of the 100 day Simple Moving Average (SMA) Friday, back to resistance at 54. If it can get through 54 then it has resistance at 56 and 57 higher. The Relative Strength Index (RSI) is sloping higher and the Moving Average Convergence Divergence (MACD) indicator is crossing positive, both supporting more upside.

Cost Plus, Ticker:$CPWM

Cost Plus had a strong move lower on Friday finishing under the 100 day SMA and at the low. With the RSI and MACD pointing lower expect more downside. This is a good short with support lower at 9.54 and then 9.06 and 8.34. Use 9.75 area as a stop. The short interest is over 10% on this name so consider using options to trade.

Regal Entertainment, Ticker:$RGC

Regal Entertainment broke above a symmetrical triangle on Thursday and moved higher Friday to the 23.6% Fibonacci level as resistance. If it can get through that level then it has resistance at 14.75 and a target of 15.60. The rising RS and MACD support further upside.

Sonus Networks, Ticker:$SONS

Sonus Networks is at resistance at 3.10 after finding support lower. If it can get above 3.10 then it has resistance at 3.37 and 3.57 higher. The RSI is sloping steeply higher and the MACD is about to cross positive, adding to the upside case. Use 2.95 as a stop.

Visa, Ticker:$V

Visa rejected off of the 80.60 resistance area and is heading lower to support first at 77.50. Under that it has support at 76.16 and 75 before a fall off to 74.25 and 73. Short interest is not factor on this name. The falling RSI and MACD that is just moving lower support more downside.

The First 5

Up Next: Bonus Idea

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

After reviewing over 800 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 Saturday which looks like a move higher for Gold but more downside for Crude Oil. The upside path looks to continue for US Treasuries but a pullback for the US Dollar Index. The Shanghai Composite looks to reverse higher but not drastically with the Emerging Markets continuing lower or consolidating. Volatility looks to remain in check. The Equity Index ETF’s all look lower but like last week they will look to the QQQ for leadership to try to pull them higher, with the SPY and IWM looking weakest without any help. Use this information to understand the major trend and how it may be influenced as you prepare for the coming week ahead. Trade’m 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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