Top Trade Ideas

Here are the Rest of the Top 10:

American Axle & Manufacturing, Ticker: AXL



American Axle & Manufacturing, is breaking above a Cup and Handle pattern with a target of 15.25. It has support for a move higher from a rising and bullish Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that is crossing to positive.

Catamaran, Ticker: CTRX



Catamaran has been in a broad sideways consolidation since the run up that stalled in April. The Fibonacci Fan Lines had played a role and now the 200 day Simple Moving Average (SMA) is acting as support. Most interesting is that it is breaking a bull flag formed over the last two weeks with a Measured Move to 58.50, with support from the RSI and MACD.

Home Bancshares, Ticker: HOMB



Home Bancshares had a long run higher from March 2012 until October before consolidating with a pullback rounding higher. Now at resistance it has support for a move through higher from a bullish RSI and a MACD that is positive and rising.

Jabil Circuit, Ticker: JBL



Jabil Circuit has been building an ascending triangle with the rising 50 day SMA as support. The MACD is running flat as is the RSI, but it is in bullish territory. A break above the triangle carries a target of at least 21.50.

Tesoro, Ticker: TSO


Tesoro is moving up to resistance from the previous top but from a higher low. In fact there have been a series of higher lows. The RSI is in bullish territory and rising again with a MACD that has just crossed to positive, both supporting more upside.

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 Saturday which moving into the last week of January sees the markets still strong but getting a little cautious. Gold and Crude Oil are consolidating with Gold better lower while Crude Oil is better higher. The US Dollar Index shows no signs of changing its sideways movement while US Treasuries are biased lower. The Shanghai Composite and Emerging Markets are consolidating in their uptrends with the Shanghai Composite the best bet for a pullback in the near term. Volatility looks to remain at unusually low levels keeping the bias for the equity index ETF’s higher. The SPY and IWM may be ready to turn over the leadership to the QQQ, as both are becoming overbought. Use this information as you prepare for the coming week and trad’em well.

Disclosure: 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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