Top Trade Ideas for the Week of June 27, 2011: The Best

After reviewing over 800 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which looks to bring more red to Gold and Crude Oil, although likely at a slower pace in Crude. The US Dollar Index seems headed to a test with the 3 year trend line while US Treasuries look to continue to consolidate, but with an upward bias. The Shanghai Composite looks higher if only to retest the weekly breakdown level while Emerging Markets consolidate, with a chance of more downside. Volatility looks to continue to drift higher with a spike a possible signal of a further downside move in the Equity Index ETF’s. Otherwise they look to continue to consolidate but with the SPY and QQQ biased to the downside while the IWM is biased higher. 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.

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

Here are the first 5 ideas for the week, to get you started:

American Axle & Manufacturing Holdings, Ticker: $AXL

American Axle is in a descending channel with trend line support. But it is currently moving higher sustaining over the mid line of the Bollinger bands for 4 days, something it has not done since the downtrend began, and is heading to the 50 day Simple Moving Average (SMA) at 11.20. it has support for a continued move higher from the rising Relative Strength Index (RSI) and the increasing Moving Average Convergence Divergence (MACD) indicator. It has resistance higher at 11.50 and then 12.20 if it can continue. It has over 10% short interest so a move higher could trigger short covering. Use a stop near 10.75, just under the recent plateau.

SeaCube Container Leasing Ltd, Ticker: $BOX

SeaCube has been in a consolidation pattern on the 50 day SMA since failing at the rising trend line at the beginning of the month. Its RSI has been trending higher and its MACD is about to cross bullishly higher. If it can get over 17 is has resistance at 18 followed by 18.50. Short interest is low and should not play a role. Use a break below the 50 day SMA as a stop if interested in a longer term play.

Dean Foods, Ticker: $DF

Dean Foods fell out of a bear flag printing a bearish candle Friday closing on the low on increased volume. If it continues under 11.95, separating from the gap up in May, then the next support lower is at 11.33 followed by the long term support/resistance at 10.75. A good short with a stop above 12. Both the RSI and MACD support more downside and short interest is low at under 3%.

ON Semiconductor, Ticker: $ONNN

ON Semiconductor is rising off of support of the 200 day SMA with support of a rising RSI and a MACD that is about to cross positive. Volume has been good on the move higher. If it can get over 10.25 then it has resistance at 10.75 followed by 11.25 and 11.75. Short interest is under 4%.

Yingli Green Energy Holding, Ticker: $YGE

Yingli Green Energy is in an ascending triangle after finding a bottom near 7.50. With a rising RSI and an increasing MACD supporting more upside it may be ready to break the triangle higher. If it can get over 8.85 then resistance comes first at 9.33 followed by 9.91 short interest is high at over 10% so a break higher could trigger a short squeeze.

Up Next: The Rest

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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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