Top Trade Ideas for the Week of July 18, 2011: The Rest

Here are the Rest of the Top 10:

CIT Group, Ticker: $CIT

CIT Group has been bouncing in a channel until it fell out lower last week. If it falls below 40 then it looks to head south to support at 39.4 followed by 37.40 and then 36 lower. The falling Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicator that is growing more negative support more downside. Short interest is low in this name but it does report earnings on the 26th.

Fortress Investment Group, Ticker: $FIG

Fortress Investment Group is hitting a quadruple bottom hard with a long bearish candle Friday. If it continues under 4.50 then there is support at 4.27 followed by the area between 3.87-3.95. Along with Simple Moving Averages (SMA) that are sloping lower, the RSI is pointing lower and the MACD is crossing negative, both supporting more downside. Short interest is small in this name so short away.

Questcor Pharmaceuticals, Ticker: $QCOR

Questcor Pharmaceuticals has been stair stepping higher in a series of bull flags. The latest one is showing some signs of breaking lower with a RSI that is sloping lower and a MACD that is about to cross negative. If it gets under 26 then it has support at 24 with the 50 day SMA just below. But if it can break the flag higher over 28 then it has a Measured Move (MM) to 32. Many are waiting for the failure as short interest is high at over 15%. This suggests a break of the flag high could trigger a short squeeze and also suggest that you may want to avoid the short side trade.

Dilliards, Ticker: $DDS

Dilliards is creating a top at 60.20 after a strong move higher. If it can get over 60.20 then it has a MM to the 68-70 area. The RSI is strong and the MACD is very positive, both supporting more upside, along with the SMA’s sloping higher.

The TJX Companies, Ticker: $TJX

The TJX Companies are building a bull flag after a strong move higher from the base between 50 and 51. If it can get over 55.80 it has a MM to 60. The high RSI supports this move but watch the MACD for signs of further weakening if the flag does not break.

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 800 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 its run higher and for Crude Oil to continue to consolidate with a bias for any breakout to the upside. The US Dollar Index looks ready to move higher but could consolidate further, while US Treasuries move sideways. The Shanghai Composite looks ready to break the flag higher while Emerging Markets consolidate in a broad range between 44.2 and 48.2. Volatility looks to remain subdued but despite this Equity Index ETF’s, SPY, IWM and QQQ look biased to the downside in their broad ranges, but near support. A true stock pickers market. 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.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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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