5 trade ideas excerpted from the detailed analysis and plan for premium subscribers:
Deere & Company (NYSE:DE)
Deere, DE, dropped with the market in August and then traded sideways in a $10 range for 6 months. It popped up higher into its gap in March, but quickly receded. Finding support at a higher low, it moved back higher in April. It is now consolidating at the prior high. The RSI is in the bullish zone and the MACD rising, both supporting more upside. Look for a break of resistance to participate higher.
Krispy Kreme Doughnuts (NYSE:KKD)
Krispy Kreme Doughnuts, KKD, started a move lower in July 2015, finding a bottom in November. A brief bounce saw it then fall back and retest that low. It worked back higher then over the December bounce, confirming a double bottom. It gapped higher two weeks ago and has consolidated, holding the gap. The RSI is strong and in the bullish zone while the MACD is rising. Both support a continuation higher. Look for a break of consolidation to the upside to participate.
Monsanto (NYSE:MON)
Monsanto, MON, made a high just under 125 in May 2015 before a 5-month pullback. That shed 35% of its market cap. It bounced from there to 100 but failed to go any further, falling back. But the pullback was to a higher low. It has been consolidating since between 84 and 96. The RSI has now moved into the bullish zone and the MACD is rising, supporting a push higher. Look for a break of the consolidation to participate.
ON Semiconductor (NASDAQ:ON)
ON Semiconductor, ON, was a Top 10 Idea from last week, to the upside. It broke higher and then failed. Now it shows up as a potential downside trade. It consolidated after the move higher and at the end of last week finished with a strong move lower. The RSI is falling and the MACD is dropping after crossing down. Look for a break of consolidation to participate to the downside.
Toronto Dominion Bank (NYSE:TD)
Toronto-Dominion Bank, TD, made a low in January, and after some chop through in February has been moving steadily higher. Last week saw it consolidate, perhaps preparing for another leg higher. The RSI is in the bullish zone and the MACD is drifting higher. Look for a break of consolidation to participate to the 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 Friday, which, as the calendar turns to May, sees the equity markets are looking worn out and in general better to the downside.
Elsewhere look for gold to continue its uptrend while crude oil moves higher as well. The US Dollar Index is on the cusp of a major breakdown, while US Treasuries churn with a bias to break to the upside. The Shanghai Composite looks to continue to consolidate along with Emerging Markets, but look for the latter to be biased to eventually break that consolidation higher.
Volatility looks to remain subdued but not at the lows, keeping the bias higher for the equity index ETFs SPDR S&P 500 (NYSE:SPY), iShares Russell 2000 (NYSE:IWM) and PowerShares QQQ Trust Series 1 (NASDAQ:QQQ), despite the moves lower. Their charts are more mixed, with the QQQ firmly heading lower, the SPY pulling back in its uptrend and the IWM stalling. 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.