Top Trade Ideas for the Week of June 6, 2011: The First 5

After reviewing over 800 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early. 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.

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

Here are the first 5 ideas for the week, to get you started:

American International Group, Ticker:$AIG

AIG is sitting on long term support/resistance at 27.60. If it holds then it may bounce higher to resistance at 29. and then the gap at 29.46. If it fails then support is found at 24 lower. Watch the Relative Strength Index (RSI) for a turn up and the Moving Average Convergence Divergence (MACD) for a turn to p[positive as a sign that it is going to hold and rise.

Fortress Investment Group, Ticker:$FIG

Fortress Investment Group is basing just over 5 with a MACD that is just crossing higher and a RSI that is starting to trend up. If it can get over 5.15, over the 200 day Simple Moving Average (SMA) then it sees resistance at 5.25, followed by 5.4 and 5.60. A stop can be placed near 5.

A123 Systems, Ticker:$AONE

A123 Systems is consolidating in a channel between 5.35 and 6.25 with the 50 day SMA coming down to meet it. What makes it interesting is that the RSI is diverging higher. If it can get over 6.25 then it has resistance at 7.50. Probably not a Monday trade but watch it.

United States Brent Oil Fund, Ticker:$BNO

United States Brent Oil Fund has been flagging lower but recently consolidating the range to the upper end bounded just under the 50 day SMA. The RSI is at the mid line but he MACD is growing positive as the Bollinger bands squeeze. If it squirts out higher there is resistance at the gap at 80.25 and then 84.11. Oh yeah, hell is breaking loose in Yemen too.

iPath DJ-UBS Livestock Subindex Total Return ETN, Ticker:$COW

I wrote about the iPath DJ-UBS Livestock Subindex Total Return ETN, COW, as part of a pairs trade last week but it is looking ready to break out higher soon. It printed a bullish engulfing candle in its base Friday and the MACD crossed positive, with the RSI turning higher. Over 28 it has resistance from the 28.40 previous bottom and then 29 and 29.35, before testing the SMA’s over 30.

Up Next: The Rest

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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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