Top Trade Ideas for the Week of February 28, 2011: The Rest

Here are The Rest of the Top 10, enjoy:

Big Lots, Ticker: BIG

Big Lots found a bottom near 39.50 and moved higher Friday to the consolidation area between 41 and 42. If it can get over 42 then there is a Measured Move (MM) target at 43 based on symmetry with the 39 to 42 move, and a second MM target above that at 50 looking back to the 32 to 42 move. The Relative Strength Index (RSI) has come back into an area where it can move higher and is pointing up. The Moving Average Convergence Divergence (MACD) is about to cross down though. The 50 day Simple Moving Average (SMA) has just crossed through the 200 day SMA, and now the 100 day SMA looks to do the same. Look for a MACD reverse towards positive and the 100 day over 200 day SMA cross as a signal that it is ready for a move higher.

DuPont Fabros Technology, Ticker: DFT

DuPont Fabros boke above the recent high on Friday, above 24.20. It now has resistance at 24.70 and 25.63 before the peak at 26.60 in September. The rising RSI and increasing MACD support a move higher. Also worth noting the short interest on this stock is at 20% of the float, which is equivalent to 11 days volume to cover.

PetroQuest Energy, Ticker: PQ

PetroQuest printed a big Bullish Engulfing candle Friday, but it is also a continuation of a expanding wedge. If it can get over 8.90, to a new 2 year high, then there is resistance at the 10.25-10.50 from late 2008 before a gap between 11.61 and 11.80. From there it can really get moving. The RSI is rising and the MACD is crossing up as it moves positive, supporting an upside move.

China Shen Zhou Mining & Resources, Ticker: SHZ

China Shen Zhou Mining & Resources has come off of a 4 year triple top and has been following the Fibonacci levels quite well since peaking. It is now resting in a Bear flag on the 50% retracement level of the recent up move at 5.72 with a RSI that remains in Bearish territory and a MACD that is growing more negative. If it can get through 5.72 then it may be a quick ride down to 4.51, the 61.8% retracement. A stop could be placed at 5.90. Although this has been a heavily shorted stock it currently has 10% short interest with only 1 day’s volume to cover.

Virtus Investment Partners, Ticker: VRTS

Virtus Investment Partners is breaking above the 58 resistance area and ready to head higher. above
heading higher. It is already at all time highs so the only guide as a target is to use a MM to 68 based on symmetry with the move up from 45 to the 58 leveling area. The RSI is rising and the MACD has reversed and started to improve, creating a supportive environment for a move higher. A stop can be placed at 57.50

The First 5

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 Friday which looks to bring more upside for Gold and Oil. The US Dollar Index is still in critical territory on long term support and looking lower with US Treasuries looking stronger still. Both the Chinese and Emerging markets are set up to continue lower. The Volatility Index may drift in a wider range but is not expected to move materially higher. The US Equity ETF’s, SPY, IWM and QQQQ, all look to continue their moves higher but with caution advised for a possible confirmation of the Hanging Man and a continued short term correction.

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

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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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