5 Trade Ideas for Monday: CBOE, Costco, Danaher, Fastenal and Johnson & Johnson

• Posted by Greg Harmon
• on August 23rd, 2020

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Cboe Global Markets, Ticker: $CBOE

Cboe Global Markets, $CBOE, bottomed in March and then had a weak bounce to a top in June. It has pulled back since and is possibly rounding out of a bottom at a higher low. The RSI is rising towards the bullish zone with the MACD rising and about to go positive. Look for continuation to participate…..

Costco, Ticker: $COST

Costco, $COST, started higher in June, running until a pause and consolidation in July. It moved higher out of consolidation in August and then quickly pulled back. Now it has reversed and is making a new high. The RSI is rising in the bullish zone with the MACD flat but positive. Look for continuation to participate…..

Danaher, Ticker: $DHR

Danaher, $DHR, made a “V’ recovery off of a March bottom, pausing as it reached the February high. It pulled back in a bull flag until breaking higher in June. That move continued to a top as the calendar turned to August. It has consolidated under resistance since. The RSI is strong in the bullish zone with the MACD leveling after a pullback. Look for a push over resistance to participate…..

Fastenal, Ticker: $FAST

Fastenal, $FAST, started higher in March and continued to a pause in June. It broke that to the upside and continued to the current consolidation area. The RSI is strong in the bullish zone with the MACD flat and positive. Look for a push over resistance to participate…..

Johnson & Johnson, Ticker: $JNJ

Johnson & Johnson, $JNJ, made a “V” recovery and reached a new high in April. it pulled back to touch the 200 day SMA from there before reversing higher. It ended last week making a higher high. The RSI is rising in the bullish zone with the MACD crossed up and moving higher. Look for continuation to participate…..

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After reviewing over 1,000 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 Friday which with the August options expiration in the past, sees equity markets showed some divergence, with the small caps moving lower while the S&P 500 and Nasdaq 100 set all-time highs.

Elsewhere look for Gold to continue to consolidate in the uptrend while Crude Oil slowly drifts higher in consolidation. The US Dollar Index pauses in consolidation while US Treasuries consolidate in their uptrend. The Shanghai Composite looks to consolidate over support while Emerging Markets consolidate in their uptrend.

The Volatility Index looks to continue the slow drift lower making the path easier for equity markets to the upside. Their charts are mixed though, with the SPY and QQQ looking strong on both timeframe. The IWM is building a bull flag on the shorter timeframe and showing a reversal on the longer chart. Use this information as you prepare for the coming week and trad’em 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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