Top Trade Ideas for the Week of September 12, 2011: The Rest

Here are the Rest of the Top 10:

Ariad Pharmaceuticals, Ticker: $ARIA

Ariad Pharmaceuticals is in an ascending triangle with a top at 10.15. The Relative Strength Index (RSI) has been drifting higher and the Moving Average Convergence Divergence (MACD) indicator is steady and positive. If it can break above the triangle and get over resistance at 11, then there is resistance higher at 12 and then a target on the pattern break at 12.80. Conversely if it falls under 9.28 then there is support at 9, followed by 8.25 and then 7.6. Short interest at near 12% is high so be diligent on a short side play, understanding a squeeze could occur.

Compania de Minas Buenaventura, Ticker: $BVN

Compania de Minas Buenaventura looks like the rare weak mining stock after a big run higher. The RSI is falling and the MACD has just crossed negative, supporting some downside. If it falls under 46 then it has support at 45 followed by 44.10 and then 42.90. A stop can be placed at 47.70.

Edwards Lifesciences, Ticker: $EW

Edwards Lifesciences is falling from the bear flag. It has a falling RSI and a MACD that is fading to zero, both supporting more downside. If it falls under 70 then there is support at 68.3, followed by 66.3 and 63.15. The target from the bear flag break is at 50. Use 72.50 as a stop and convert it to a trailing stop under 68.30.

Nova Measuring Instruments, Ticker: $NVMI

Nova Measuring Instruments is heading lower in a falling wedge. The RSI is bouncing along the 30 line in bear territory and the MACD is fading back to zero. If it gets under 6 then there is support at 5.55, followed by 5.23 and then 5.10. Use 6.28 as an initial stop.

Seattle Genetics, Ticker: $SGEN

Seattle Genetics may be making a double top at 18.50, with a broadening top in the candlesticks. The RSI is falling but still in bullish territory and the MACD is fading lower. If it loses support at 16.55 then there is support lower at 16.24 and then 15.50. If it can break over 18.50 though then there is resistance at 19, followed by 19.50 and then a Measured Move (MM) to 20.30. Short interest is high at near 20%.

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 900 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 presented the coming week as positive for US Treasuries and the US Dollar Index. Gold looks to continue to be biased higher and Crude Oil lower, but both may also continue in the respective bull and bear flags. The Shanghai Composite and Emerging Markets continue to favor the downside. Volatility looks to remain elevated with a bias towards heading higher. This backdrop suggests favoring a downside bias in the US Equity Index ETF’s SPY, IWM, and QQQ. They may continue to hold their bear flags but a big push higher in the US Dollar Index and US Treasuries are likely to push Volatility higher out of its range and lead to the Equity flags breaking lower. Use this information as you prepare for the coming week and trade’m well.

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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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