Top Trade Ideas for the Week of June 6, 2011: Bonus Idea

• Posted by Greg Harmon
• on June 5th, 2011

Here is your Bonus Idea with links to the full Top 10:

Cadence Pharmaceuticals, Ticker:$CADX

Cadence Pharmaceuticals is in a bull flag just under resistance at 10.00 after a strong move higher. If it can break the flag higher over 10.00 then it has resistance at 10.50 and then a Measured Move (MM) to 11.55 where there is also previous resistance from 2009. The Relative Strength Index (RSI) is pulling back and the Moving Average Convergence Divergence (MACD) indicator is declining, so if it rejects at 10.00 then support under the flag comes at 9.00 and then 8.56. Short interest is near 25% and options spreads very wide so either avoid the short trade or be very diligent.

The First 5

The Rest

(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 to continue the trend higher for Gold with Crude Oil drifting sideways to slightly higher. The US Dollar Index should continue lower while US Treasuries remain in an uptrend but with a potential reversal looming. The Shanghai Composite could continue its flag or head lower while Emerging Markets continue their flag or head higher. Volatility should remain subdued but start to watch for a break of 21.25 to change that. The Equity Index ETF’s, SPY, IWM and QQQ are all on the same page again and look lower. 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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