Top Trade Ideas for the Week of April 4, 2016: The Rest

• Posted by Greg Harmon
• on April 3rd, 2016

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

Here are the Rest of the Top 10:

TD Ameritrade, Ticker: $AMTD

TD Ameritrade, $AMTD,fell hard with the market to start the year. It found support into early February as volume ramped up and them fell back. Since mid February it has been rising, reaching resistance at the January bounce level and consolidating through March. Friday saw a bullish engulfing candle break over that range and the 100 day SMA. With the RSI bullish and the MACD about to cross up and rise again look for continuation to participate to the upside…..

Danaher, Ticker: $DHR

Danaher, $DHR, ended 2015 with a strong run higher stopping just short of 100 at the end of November. The pullback that followed was deep, retracing the entire move higher, bottoming in late January. That was followed by another sharp leg higher. What was that about the Efficient Market Hypothesis? It is now consolidating and Friday saw a bullish engulfing candle. This shifted the MACD from a possible cross down to flat with the RSI strong in the bullish zone. Look for a continuation to participate to the upside…..

Eaton, Ticker: $ETN

Eaton, $ETN, also had a long run lower over the summer of 2015. There was some bouncing around then from October through to a final low in mid January. Since then there has been no doubt the trend is up, with the stock rising for nearly 3 months. The last two weeks it has consolidated and Friday’s bullish engulfing candle looks for continuation higher. The RSI is bullish and the MACD pulling back slightly. Look for continuation higher Monday to participate to the upside…..

PerkinElmer, Ticker: $PKI

PerkinElmer, $PKI, started the year with a quick move lower followed by consolidation. Then a second move lower ran to the lower in early February on a spike in volume. The following move higher has stalled at the prior resistance, until Friday saw a break higher. It has support for more upside from a rising and bullish RSI and MACD. Look for follow through to participate to the upside…..

Red Hat, Ticker: $RHT

Red Hat, $RHT, started the year off to the downside as well, bottoming nearly 30% lower in early February. But since then it has risen steadily. It touched the 200 day SMA 2 weeks ago and pulled back. The reversal back higher made a higher low and it is now back at the prior high. The RSI is in the bullish zone and rising while the MACD avoided a cross down. These support more upside, and if it pushes to a higher high look to participate on the upside……

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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 heading into the first full week of April sees the equity indexes looking strong and ready to make another leg higher.

Elsewhere look for Gold to continue its pullback along with Crude Oil. The US Dollar also looks to continue lower, possibly testing key 12 month support while US Treasuries are breaking to the upside and look to continue. The Shanghai Composite looks poised to move higher in its downtrend as Emerging Markets continue to trend higher.

Volatility looks to remain low and biased lower keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ, despite the moves the past week. Their charts also look strong on both the daily and weekly timeframe with the only slight warnings coming from slowing momentum indications. Use this information as you prepare for the coming week and trad’em well.

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