Top Trade Ideas for the Week of May 9, 2011: The First 5

After reviewing over 700 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 for further downside if Gold gets below 1475 and upside over 1500. Also look for Crude Oil to continue lower with support at 97 but a move above 100 turning it bullish. The Dollar Index looks to continue higher next week along with US Treasuries. The Shanghai Composite looks to continue lower in the coming week along with Emerging Markets. Expect the Volatility Index to remain in a range between 15.50 and 22. The SPY and IWM look for more downside longer term with the QQQ more bullish. All of the Equity Index ETF’s will trigger buys on moves to new highs though after printing a series of higher highs an higher lows. 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:

Bank of the Ozarks, Ticker:$OZRK

Bank of the Ozarks is in a bull flag after moving above and retesting the channel. If it can get over 47.75, breaking the flag higher, then it has a target on a Measured Move (MM) to 50.60. The increasing Moving Average Convergence Divergence (MACD) and high Relative Strength Index (RSI) support move upside, as do the expanding Bollinger bands (BB) and rising Simple Moving Averages (SMA). Use the bottom of the flag as a stop.

Northern Trust, Ticker:$NTRS

Northern Trust has been in a downward trend since the beginning of the year. Last Thursday if fell through support at the 61.8% Fibonacci retracement of the up movement and finished the week with a bearish engulfing candle. Using 49.20 as a stop, this looks good short to the 47.38-47.50 level as first support and 46.50 next then a full retracement to 44.55. Nothing positive here.

Jinkosolar, Ticker:$JKS

Jinkosolar has been in a symmetrical triangle since November. Since finding support at the confluence of the SMA’s on Tuesday it has had 3 consecutive positive candles and now looks poised to move higher. Above 28 this has resistance at the 31 – 32 area and then 36 and 40. You could enter now with a stop at the SMA’s or wait for a break of the rail and use that as a stop.

IntercontinentalExchange, Ticker:$ICE

IntercontinentalExchange moved higher Friday off of the long legged doji from Thursday. The RSI has turned higher and the MACD is improving as it moves higher supporting more upside. First resistance comes at 119.70 and then 121 and 122.60. Use the 200 day SMA as a stop.

Holly Corp, Ticker:$HOC

Holly also reversed Friday off of a doji Thursday and looks higher. It has a rising RSI and an improving MACD supporting more upside. If it can get through 58.15 then it has resistance in the 62 – 63 area before a run at 66. Wait for a break of the 50 day SMA for an entry and then use it as a stop.

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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