Top Trade Ideas for the Week of February 22, 2011: Bonus Ideas

• Posted by Greg Harmon
• on February 21st, 2011

Here is a special President’s Day edition of the Bonus Idea with links to the entire top 10.

Dolby Laboratories, Ticker: DLB

Dolby Labs has reversed and is heading higher. The Relative Strength Index (RSI) is moving up and the Moving Average Convergence Divergence (MACD) indicator is improving. The first resistance is at 54 and then 55 before the bottom of the gap at 57.50

Estee Lauder, Ticker: EL

Estee Lauder is in a bull flag and starting to break out of it higher. The next resistance is at 100 and then the measured move target at 102.50. A stop could be placed at 93.

Lululemon Athletica, Ticker: LULU

Lululemon is in a bullish flag after a strong run higher. The RSI has worked off the overbought condition and is ready for more. If it can get over 83.50 then it has a target on a measured move at 93.50. If it loses support at 81 then the next support is at 75.

Staples, Ticker: SLPS

Staples looks ugly. If it loses 21.20 then the next support is at 20.70 and then 19.90. The RSI and MACD support a move lower.

Tesla Motors, Ticker: TSLA

Tesla is holding the 61.8% retracement of the move higher at 23.17. If it loses that then the next support lower is at 22.30 and then 21.00. The RSI has not been able to break above 50 suggesting it is possible to move down from here. Put a stop at 24.00.

The First 5

The Rest

After reviewing over 700 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 looks for Gold to continue higher and crude Oil to decide it it wants 100 with a break of 88.50. The US Dollar Index will look for support and US Treasuries to maintain support both to avert disaster. The Chinese market looks higher with Emerging Markets continuing to consolidate with a bias higher if they finally break the range. Volatility looks to continue to be muted facilitating a continuation of the trend higher in the US equity ETF’s.

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

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