Top Trade Ideas for the Week of July 18, 2011: Bonus Idea

• Posted by Greg Harmon
• on July 17th, 2011

Here is your Bonus Idea with links to the full Top Ten:

Fomento Econmico Mexicano, Ticker: $FMX

Fomento Econmico Mexicano, $FMX, is in a bull flag after a move out of a consolidation area between 61 and 63. It has a Relative Strength Index (RSI) that it is moving higher again but a Moving Average Convergence Divergence (MACD) indicator that has been moving back to zero. If it can break the flag higher over 69 it has a Measured Move (MM) to 76 higher. If it falls below 67 then it can be played on the short side to support at 64 and then the channel from 61-63 lower. Short interest is small on this name and earnings will be out in August.

The Best

The Rest

(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 for Gold to continue its run higher and for Crude Oil to continue to consolidate with a bias for any breakout to the upside. The US Dollar Index looks ready to move higher but could consolidate further, while US Treasuries move sideways. The Shanghai Composite looks ready to break the flag higher while Emerging Markets consolidate in a broad range between 44.2 and 48.2. Volatility looks to remain subdued but despite this Equity Index ETF’s, SPY, IWM and QQQ look biased to the downside in their broad ranges, but near support. A true stock pickers market. 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.

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.

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