Top 10 Ideas for the Week of July 12, 2010

After looking at over 500 charts and posting my thoughts on over 175 of them I have found some good setups for the week. What a difference a (shortened) week makes. 10 short ideas last week, only one here. There are also 6 long set ups and 3 potential break outs where they could go either way. These should be viewed in the context of the macro view which looks most likely to be a range bound week for equities with a bias to the top of the range. Gold also still weak but at a support area, Oil now in a new higher range and the Dollar still looking for support. Here are the top ten, tonight in alphabetical order by ticker:

1. American Eagle Outfitters, Ticker: AEO


In a down trend and getting support at the 11.40-12.30 range. If it fails support the next level down is 9.60. If it goes through the trend line then resistance is at 13 followed by 14.07. Falling SMA's suggest it is more likely to fail the support level.

2. Astrazeneca PLC, Ticker: AZN


Broke out and retested before rising again. Looks strong. Target is 53 on a measured move, looking at the run from 35 break out level previously to the channel bottom at 42. Support below is at 47 before the top of the channel at 46.

3. Buffalo Wild Wings, Ticker: BWLD


Touching the falling 50 day SMA at 37.93, looks to reject lower from recent 3 wk downtrend. 35.25 -.40 has been good support and expect another test there. Failure brings support at 30.90. If it breaks the 50 SMA, 41.50 is resistance above.

4. Blackstone Group, Ticker: BX


Holding strong above the 9.83 Fibonacci level. Will run to 11.04/11.39, and then maybe 12.65. Support below is 9.7 and a break of that sees 9.00 as support.

5. Chipotle Mexican Grill, Ticker: CMG


It held support at 135 last week and is now testing 141.43, the 50SMA. Above 141.43 it will run to the previous high at 156. There is still support at 135.

6. Hi-Tech Pharmacal Co, Ticker: HITK


At the top of a symmetrical triangle with all SMA's acting as resistance. Could break higher but not likely. If it did the target would be 35. More likely test bottom at 21. Below that and it can run to 13 with a stop at 19 and 17 on the way.

7. Universal Display Corp, Ticker: PANL


Looking strong. Above 19.50 this can run to Dec 08 highs near 23. Support below is at 17.50.

8. Transocean, Ticker: RIG


Has created a pennant after the recent fall, centered at 50. This was a previous R/S level. Fallout lower will test the lows of Dec 08 and I expect blow through that level. If the break out is higher 56.25 is the first stopping point before running to 65. My bias is to the downside.

9. RINO International Corp, Ticker: RINO


If this stock can hold above the 50SMA at 13.58 (it is above right now) it can run to 15.50 then 17.49. Really strong. Support below on failure of the 50SMA is at 12.

10. Solarfun Power Holdings, Ticker: SOLF


Aptly named solar stock, this one is the most positive solar charts. As it breaks above the symmetrical triangle higher 10.50 is the first target. I am looking for 12 or higher. Support is at the triangle at 8.50.

Bonus Idea: Visa, Ticker: V


Broke above the 50 day SMA and the 75.75 Fibonacci level on Friday. The RSI and MACD all look good. I like it to 82 (the 200SMA) or higher.

Trade'm well this week!