5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:
American International Group Inc (NYSE:AIG)
AIG, $AIG, started higher in April. It stalled in June for a month and then resumed the path higher until stopping at the same level that halted it at the beginning of the year. it pulled back fast in August but seems to have made a higher low last week. The RSI has turned back higher and the MACD is turning up toward a bullish cross. Look for continuation to participate higher…..
TD Ameritrade Holding Corporation (NASDAQ:AMTD)
TD Ameritrade, $AMTD, started to pull back from a top in January touching its 200 day SMA in late March. It consolidated there for 3 months before turning back higher in June. The move up met resistance at the same top and it pulled back again. This time it seems to be making a higher low as it consolidates over the 100 and 200 day SMA’s. The RSI is making a higher high as it reverses up and the MACD is about to cross up. Look for a push over short term resistance to participate higher…..
International Paper Company (NYSE:IP)
International Paper, $IP, made a top in January and immediately started back lower. The pace slowed in February and stopped just before touching its 200 day SMA in April. A bounce to a lower high and then retreat to the 200 day SMA again in May led to a push back to the original January top. It failed again though and this time pulled back below the 200 day SMA. It has been consolidating since then over the 200 day SMA and under resistance. The RSI is rising through the mid line and the MACD crossed up and rising. Look for a push over resistance to participate higher…..
Jazz Pharmaceuticals PLC (NASDAQ:JAZZ)
Jazz Pharmaceuticals, $JAZZ, had a strong run higher from a December low to a top at the end of April. It moved sideways from there for 3 months before pulling back. The stock found support quickly though and has consolidated since. Last week it made a short term higher low and is now back at resistance. The RSI is bumping the mid line while the MACD is crossed up and rising. Look for a push over resistance to participate…..
Olin Corporation (NYSE:OLN)
Olin, $OLN, ran higher from a low in September last year, topping out in March. It held at the top for a month before starting to leak lower, bottoming in late June. The 200 day SMA caught up to it in August and it started higher. Last week it made a higher high and closed at resistance. The RSI is in the bullish zone and rising while the MACD is moving higher. Look for a push over resistance to participate…..
Up Next: Bonus Idea
After reviewing over 1,000 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 Friday which heading into the Labor Day shortened week sees equities looking stronger led by the QQQ.
Elsewhere look for Gold to continue in its uptrend while Crude Oil sustains a small bounce in the downtrend. The US Dollar Index continues to move down with small bounces while US Treasuries are pulling back in their uptrend. The Shanghai Composite is strong consolidating a break out, ready to continue higher and Emerging Markets are rising and making 3 year highs.
Volatility looks to remain at very low levels keeping the bias higher for the equity index ETF’s SPDR S&P 500 (NYSE:SPY), iShares Russell 2000 (NYSE:IWM) and PowerShares QQQ Trust Series 1 (NASDAQ:QQQ). Their charts are all recovering with the SPY gaining short term strength, nearing a trend resumption while the IWM heads higher short term in a rising channel. The QQQ breaking to new all-time highs looks the strongest. Use this information as you prepare for the coming week and trad’em well.
DISCLAIMER: 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.