Top Trade Ideas for the Week of April 9, 2012: The Rest

• Posted by Greg Harmon
• on April 8th, 2012

Here are the Rest of the Top 10:

Cummins, Ticker: $CMI

Cummins, $CMI, is testing support at 115 for the second time after moving above that level in February. The Bollinger bands are opening lower as it arrives and the Relative Strength Index (RSI) is continuing to trend lower towards a turn bearish with a Moving Average Convergence Divergence (MACD) indicator that is negative and growing more so. Both support more down side. A move below 115 finds some support near 105.

Fortinet, Ticker: $FTNT

Fortinet, $FTNT, is trying to break higher over the previous top from July after basing between 26 and 28 for 6 weeks. It has support from a rising and bullish RSI and a MACD that has turned positive as well as Bollinger bands that are opening higher. A break higher has a first Measured Move at 30.60.

M&T Bank, Ticker: $MTB

M&T Bank, $MTB, is building a bull flag at the resistance from the top of the channel from early 2011. It sits there with a RSI that is bullish but a MACD that is crossing negative. That happens in a bull flag often. A move over the top of the flag at 87.50 has a Measured Move to 94.70.

SXC Health Solutions, Ticker: $SXCI

SXC Health Solutions, $SXCI, has been stair stepping higher off of the gap down to 42.5 in October. Now building a bull flag with a bullish RSI and a MACD that is positive and growing it is poised to move higher. The expanding Bollinger bands are also facilitating upside. A move over 79 has a Measured Move to 85.60.

Valeant Pharmaceuticals, Ticker: $VRX

Valeant Pharmaceuticals, $VRX, has been building a bull flag with a top at 55.60 for a month. It has a bullish RSI and a MACD that is slowly trending higher to support an upside move. A move over the flag top has a Measured Move to 64.50.

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After reviewing over 900 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 heading into next week sees many markets looking better to the downside. Gold and Crude Oil look to continue their recent trends lower. The US Dollar looks strong and ready to continue higher while Treasuries are better to the upside in the short run in their downtrend. The Shanghai Composite may continue the bounce in the downtrend while Emerging Markets continue to consolidate. The Volatility Index looks ready to finally start the rise off the bottom. These influencers paint as picture that gives a downward bias to the US Equity ETF’s. The chart of the SPY agrees and looks to continue lower while the IWM and QQQ may follow or just consolidate. Use this information as you prepare for the coming week and trade’m well.

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