Top Trade Ideas: The Rest

• Posted by Greg Harmon
• on January 17th, 2011

After looking at over 700 charts, I have found some good setups for the week. Here are the second half of the top 10.

Cabela’s, Ticker: CAB

After two months of consolidation it looks ready to make a move. It has worked off the overbought Relative Strength Index (RSI) and remained in bullish territory and the Moving Average Convergence Divergence (MACD) indicator is crossing higher. Look for a move higher and if it gets above 23 then a target of 26 on a measured move based on symmetry with the last break out higher. A stop could be placed just under the 21.58 support/resistance line.

Impax Laboratories, Ticker: IPXL

Impax Laboratories is breaking a triple top higher after a series of higher lows. Additionally the MACD has just crossed higher. Maintaining above 22.10 gives an initial target on a measured move of 25 with a second target at 28.

NetLogic Microsystems, Ticker: NETL

NetLogic is moving higher again after a slight pullback from the up move started December 31. If it gets over 37.10 then the target on this leg would be 42 to create symmetry with the last leg. A stop could be placed at 36. The 100 day Simple Moving Average (SMA) has just crossed the 200 day SMA higher and the RSI is rising again.

Valeant Pharmaceuticals, Ticker: VRX

Valeant was in a bull flag last week after a strong move higher. It has worked off most of the overbought RSI and is ready for the next leg. Based on symmetry with the move before the flag, 40 would be the target on a break higher. If it loses support at 34.50 it could also be played short to support at 30.

MEMC Electronic Materials, Ticker: WFR

MEMC Electronic moved through its 50, 100 and 200 day SMA’s last week and looks to be headed higher. The RSI and MACD are both is rising, supporting a further move up. If it can get through the previous resistance area at 12.20 then the next resistance is at 13 and then 13.70 above that.

The First 5

These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which looks to bring lower prices still for Gold but the bleeding could end soon with support nearby, and higher prices for Crude Oil. Treasuries look to resume their walk lower and the US Dollar Index looks to find support shortly and then move back higher. The Shanghai Composite looks to head lower but the other Emerging market are poised to move up. The low Volatility Index does not look to rise materially any time soon facilitating a further rise in the equity index ETF’s.

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