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Top 5 Trade Ideas: Week Of November 26, 2012

By Dragonfly Capital (Gregory W. Harmon)Stock MarketsNov 26, 2012 12:35AM ET
Top 5 Trade Ideas: Week Of November 26, 2012
By Dragonfly Capital (Gregory W. Harmon)   |  Nov 26, 2012 12:35AM ET
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Cummins (CMI)

Cummins (CMI) is approaching resistance of a falling trend line, which if broken would also be the neckline of an Inverse Head an Shoulders pattern. The price objective would be to at least 118. The bullish and rising Relative Strength Index (RSI) and the flat Moving Average Convergence Divergence indicator (MACD) support a run higher.

Family Dollar Stores (FDO)


Family Dollar Stores (FDO) is at a double top as it breaks above a short bull flag Friday. The Measured Move higher on the flag takes it to 72.60. The bullish and rising RSI and the positive MACD both support more upside.

Firstmerit (FMER)

Firstmerit (FMER) has been launching higher in a "V" shaped recovery after a bottom at 12.80. Now back at the consolidation range and near the 50-day Simple Moving Average (SMA) it has support for a push higher from the rising RSI about to move into bullish territory and a MACD that is positive and growing. Short interest is still a bit elevated at 9% which could lend it a hand higher.

Ingredion (INGR)


Ingredion (INGR) has been building a bull flag between 62 and 63.80 since early November. The RSI remains bullish and the MACD that turned negative is stalling. A move over the top of the flag carries a Measured Move to 70.50.

PerkinElmer (PKI)

PerkinElmer (PKI) is moving back to resistance after a brief pullback to the 50 day SMA. Over the top it has a Measured Move higher to 34. The rising and bullish RSI and MACD that is about to cross to positive support more upside as well.

After reviewing over 1,000 charts, these were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which, coming out of the Thanksgiving holiday sees the markets set up for a run higher into the end of the year. Gold looks higher in its neutral trend while Crude Oil is set to head higher. The US Dollar Index appears biased lower in the uptrend while US Treasurys also look better lower.

The Shanghai Composite is biased lower but being mindful of a possible double bottom, while Emerging Markets resume their consolidation under long-term resistance. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ, and their charts seem to agree, with the lone caution being the recent move higher on decreasing holiday week volume. Let price guide not volume. Use this information as you prepare for the coming week and trade’m 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.

Original post
Top 5 Trade Ideas: Week Of November 26, 2012
Top 5 Trade Ideas: Week Of November 26, 2012

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