Top Trade Ideas for the Week of August 21, 2011: The Rest

Here are the Rest of the Top 10:

Diamond Foods, Ticker: $DMND

Diamond Foods has been moving higher during the market sell off, but paused last week. Moving back higher Friday it has a Relative Strength Index (RSI) that is holding over the mid line an d turning up, while the Moving Average Convergence Divergence (MACD) indicator is growing. If it can get over the 50 day Simple Moving Average (SMA) and 72.80 then it has a Measured Move (MM) to 79. This has very large short interest so a squeeze higher is also a possibility.

Express Scripts, Ticker: $ESRX

Express Scripts is a disaster plain and simple. The RSI is running lower again and the MACD cancelled its plans to cross and is growing more negative. Now it is losing support at 45 and looks headed lower to support at 44, followed by 42.50 and then 41.80. Short interest is elevated at over 8% so be cautious. I suggest a stop near 45.

Flotek Industries, Ticker: $FTK

Flotek Industries is flowing lower, and the RSI and MACD support more downside. It has support at 5.28 followed by 4.75 and then 4. Short interest is elevated at over 6% so be cautious. A stop could be paled at 6.10 and trailed lower as it falls.

Research in Motion, Ticker: $RIMM

Research in Motion is in a bull flag between 26.50 and 27. If it can get over 27 it has resistance at 28.20 followed by 30. The RSI is moving and holding higher above the mid line and the MACD is growing, supporting more upside. The gap at 30 is long term resistance. Short interest is a bit over 5% and I suggest you use 26.4 as a stop.

World Acceptance, Ticker: $WRLD

World Acceptance is holding in a channel between 59.70 and 68.75, now heading to support at 59.70. If it holds then look for a bounce to 64, but if it breaks through then support is lower at 58, followed by 55, then 52 and 50.80. Short interest is near 20% so any bounce could accelerate higher.

Up Next: Bonus Idea

The Best

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

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 saw the entire rubber band of the market is getting a little stretched but expect it to continue next week. Gold looks to continue higher as Crude Oil continues to sell off. The US Dollar Index appears comfortable continuing sideways while US Treasuries move higher. The Shanghai Composite and Emerging Markets look ready for more downside. Volatility looks biased higher leading to the expectation that Equity Index ETF’s SPY, IWM and QQQ continue lower. Remember that a stretched rubber band can result in two outcomes: a snap back, or the rubber band breaks and the real carnage results. Stay nimble. 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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