Top Trade Ideas for January 24, 2011: Bonus Idea

• Posted by Greg Harmon
• on January 23rd, 2011

After looking at over 700 charts, I have found some good setups for the week. Here is your Bonus Idea.

Select Comfort Corporation, Ticker: SCSS

Select Comfort started the year strong moving higher to 10.5 but then retreated back to long time support and resistance at 9.81. Friday it bounced back to the 10.50 level. The Relative Strength Index (RSI) is moving higher and has some room, and the Moving Average Convergence Divergence (MACD) indicator is improving after a short trip lower. If it can get over 10.50 it has resist at 11.30 and then 12, which would also be the Measured Move (MM) target. Above that there is room to dial up the sleep number quite a bit. Now get some rest and be ready for tomorrow.

The First 5

The Rest

These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which looks to continue the bloodbath for Gold, the US Dollar Index and US Treasuries. Although Crude Oil looks to be heading lower there is a lot of support nearby. The Shanghai Composite and Emerging markets look headed lower too. The divergence in the US equity Indexes, with the large cap SPY doing better than the QQQQ which is doing better than the IWM also looks to continue, with the SPY looking higher, the QQQQ mixed and the IWM looking lower. Sector Analysis showed that the strongest sectors are Consumer Staples and Utilities with Materials and Technology the weakest.

(As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

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