Top Trade Ideas for the Week of July 11, 2011: The Best

• Posted by Greg Harmon
• on July 10th, 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 and Crude Oil to both continue higher. The US Dollar Index and US Treasuries to move higher towards resistance at 77.30 and 97.30 respectively. The Shanghai Composite and Emerging Markets also are biased to the upside, although both have resistance nearby. Volatility looks to remain stable and subdued allowing for the Equity Index ETF’s SPY, IWM and QQQ to continue higher. But each are showing signs of a pullback in the short timeframe that could translate into the weekly timeframe quickly, with Treasuries moving higher as a possible catalyst. Look for upside but keep the stops tight. A reversal could come quickly. 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:

EV Energy Partners, Ticker: $EVEP

EV Energy Partners is in a bull flag after a move higher off of the 100 day Simple Moving Average (SMA). As it has risen the Relative Strength Index (RSI) has been trending higher and the Moving Average Convergence Divergence (MACD) is increasing, supporting more upside. The flag is at previous resistance from the May 1 high and is showing extended shadows on the candle from Friday. If it can over 59 then it has a Measured Move (MM) to 70. Use a stop just under the flag. Earnings are not until August and and short interest is negligible. Entering on the break of 59, when it gets over 60, move the stop to a 3% trailing stop, and tighten to 2% above 65.

Endeavour Silver Corp, Ticker: $EXK

Endeavour Silver has been heading higher after finding support under 8 in June. It has a RSI that is rising and a MACD growing more positive, support a continued move higher. Now it is heading to previous resistance at 10.5 from May and if it can get over that the next resistance is at 12. Earnings are not released until August and short interest ins less than 3%. Use a stop near 9.75 initially and raise it to the 10.40 area on a break above 10.50. When it gets over 11 trail the stop and tighten it near 12.

US Energy Corp, Ticker: $USEG

US Energy has been moving higher off of the base at 3.90 since the middle of June. With a rising RSI and a MACD that is increasing it is now heading to resistance at 5 with resistance higher at 5.60. This also does not report until August, but may be bolstered by a short squeeze with short interest near 8%. Trail a stop on this that begins initially in the 4.40 area.

Frontier Communications Corp, Ticker: $FTR

Frontier Communications is in a bull flag at previous resistance at 8.20, also the center of the symmetrical triangle from October 2010. The bottoms of the last few candles have been consolidating higher as the volume is growing. The RSI is rising after testing the mid line and the MACD is increasing, both supporting further upside. if it can break the flag over 8.25 it has resistance at 8.70 followed by 8.80 and then 9.15. Earnings are not a factor as they do not report until August, but Short interest is high over 9% which could lead to a squeeze. Place a stop at the bottom of the flag near 8.10 and move it up near 8.50 as it breaks 8.60.

Sonic Corp, Ticker: $SONC

Sonic printed a classic Tweezer Top Thursday and Friday last week, with long upper shadows ending in the same place and then settling lower. This happened right at the spot of previous resistance/support at 11.00. The RSI is turning lower and the MACD waning. Look for a continuation lower and on a move under 10.75 support at 10.20 followed by 10 and then 9.75. Place a stop near 11 and move it down as the price breaks the support levels. Short interest is high near 8% so do not leave the room with out that stop in place.

Up Next: The Rest

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