Top Trade Ideas for the Week of August 1, 2011: The Rest

• Posted by Greg Harmon
• on July 31st, 2011

Here are the Rest of the Top 10:

Abbott Laboratories, Ticker: $ABT

Abbott Laboratories is moving lower off of a double top at 53.50. It has support at 50.50 and the support/resistance area at 49.80 followed by 49 lower. The Relative Strength Index (RSI) is running lower and the Moving Average Convergence Divergence (MACD) indicator is growing more negative, supporting more downside.

Anadarko Petroleum, Ticker: $APC

Anadarko Petroleum has been in a bull flag between 82.50 and 85 after breaking over the expanding wedge. If it can get over 85 it has a Measured Move (MM) to 92. If however it falls below 81 then there is support at 80 followed by 76.70 lower. The RSI pointing lower and the MACD moving south towards zero suggest the bias is to the downside. Short interest is not an issue on this name.

Discover Financial Serivces, Ticker: $DFS

Discover Financial is retesting the 25 breakout area after falling from a move higher. If it holds 25 then there is resistance higher at 26.6 followed by 27 and then 28. The RSI has fallen but is currently holding the mid line and the MACD is flat and lower. A mixed bag but good action Friday with a Hollow Red candle. Under 25 it has support at 23.80.

eBay, Ticker: $EBAY

eBay has pulled back slightly after making a triple top near 35. It has a RSI that is falling and a MACD that is crossed lower. It is in no man’s land until it gets under 32 when it then has support lower at 31 and 29.80. If it reverses and gets over 35 it has resistance at 37.50 and then 41, both from 2007. A nice keeper on the long side watchlist even if you play it short. Short interest is not an issue.

Vertex Pharmaceuticals, Ticker: $VRTX

Vertex Pharmaceuticals is approaching the 52.25 resistance level for the third time since late June. If it can get over 52.25 it has resistance at 55, followed by 56 and then 58. The RSI heading higher and the MACD crossing up are supportive of a break higher. Short interest is under 4% for this name.

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The Best

(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 and US Treasuries look to continue their moves higher in the coming week, with Crude Oil and the US Dollar Index continuing lower. The Shanghai composite looks to consolidate further in the middle of its range while Emerging Markets do the same at the upper end of their range. Volatility looks biased to the upside contributing to the view that Equity Indexes, SPY IWM and QQQ will continue lower. All look to remain within their ranges with the QQQ remaining the strongest much higher in its range. News driven breaks to the upside should be contained in the range with the possible exception of the QQQ’s. 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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