Top Trade Ideas for the Week of July 5, 2011: The Best

• Posted by Greg Harmon
• on July 4th, 2011

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 for Gold to continue lower with Crude Oil biased to the upside but defined by the range between 88 and 102, I know that is big stay away from the middle. The US Dollar Index still looks headed higher to test the trend break in a bear flag, while US Treasuries continue lower. The Shanghai Composite is headed higher towards a test of the breakdown while Emerging Markets continue higher to resistance. The Volatility Index looks to remain stable allowing a run higher by the Equity Indexes toward previous highs from April. Remain cautious on any move lower that does not hold support from near Tuesday’s highs as this could trigger a major down move and a Head and Shoulders top. 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:

Corn Products International, Ticker: $CPO

Corn Products is in a small bull flag near a double top. If it can get over 56.40 it has resistance at that double top at 57.50 and then a Measured Move (MM) to 67 MM. The Relative Strength Index (RSI) is moving higher and the Moving Average Convergence Divergence (MACD) indicator is increasing. Place a stop at 55.15 just under the flag initially and move it to 56 on a hold of the break out. When it gets over 57.50 move the stop above 57 and then start to trail it above 60 or stock replacement into call options. The short interest is low and earnings are not until july 28th.

Noranda Aluminum Holding, Ticker: $NOR

Noranda Aluminum is breaking higher after basing on the 200 day Simple Moving Average (SMA) just under the previous support at 13. The RSI and MACD are both pointing to more upside. Now through the 50 and 100 day SMA’s it has resistance at 16.50 and then 17.50. Place a stop near the 100 day SMA and move it to a 25 cent trail over 16. The short interest is low under 1% and earnings are released on July 27, but it could be impacted when Alcoa (ticker: $AA) releases earnings July 11th.

Old Dominion Freight Line, Ticker: $ODFL

Old Dominion Freight Line is up near previous resistance near 38 after two steps higher off of the 100 day SMA and then the 50 day SMA. Its RSI and MACD have been trending higher during that run and look to continue providing support for more upside. If it can get over 38.14 then it has targets on MM’s at 39 and then 43. Earnings are not released until July 25th and the short interest is negligible. Use the top at the end of May near 37.60 as a stop initially, and move it to a 30 cent trailing stop on a proven hold over the entry.

SBA Communications, Ticker: $SBAC

SBA Communications is breaking higher out of a descending triangle it has been in since late February. As it does so, the RSI and MACD are supportive of more upside. If it can over 39.67 where the 100 and 200 day SMA are crossing then it has resist at 40.50 followed by 42 and then 44.20, on the way to the target out of the pattern at 45. Earnings are not released until August 1 and the short interest near 10% should act as a tailwind to the upside. Use the 100 day SMA as a stop initially and move it up close to the resistance levels as it goes through them.

Wabash National Corp., Ticker: $WNC

Wabash National is moving up off of a bottoming process and is now over the 50 day SMA. The RSI and MACD have trended higher since the bottom held and are supporting more upside. If it can get over 9.83, the previous support area, then it has resistance at 10.5 followed by 10.95 and then 11.40. Earnings are not released until August 3rd so that is not a factor. Short interest though is over 15%. Place a stop initially at the 50 day SMA at 9.58 and raise it to 9.80 as it gets over 10, and then to 10.30 on a move over 10.50, finally trailing it by about 25 cents on stability over 10.50.

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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