Sunday, September 5, 2010

Top 10 Ideas for the Week of September 6, 2010

After looking at over 500 charts and posting my thoughts on many of them, I have found some good setups for the week. This week's mix contains 9 long ideas with only 1 short setup, one breakout. These were selected in and should be viewed in the context of the broad market trend reviewed Friday and Sector analysis from Saturday which looks to bring stronger prices for Gold again. The US Dollar Index and US Treasury Bonds look to continue their moves lower. Oil is set up for a move higher but does not have much room before it runs into a wall of resistance. The falling volatility index will create the environment for stocks to push higher, but they are getting close to key resistance levels. Financials, Technology, Health Care and Materials look strongest so picks are focused there. Here are the top ten tonight in no particular order:

1. American Capital LTD, Ticker: ACAS
If this stock can get through 5.75 it sees resistance first at 6.00 and then 6.25. There is support lower at 5.31. Rising Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) . I like it's chances.

2. Keycorp, Ticker: KEY
Has had a strong run and if can get through the 100 day Simple Moving Average (SMA) at 8.10 it can run to resistance higher at 8.55 and possibly 8.75 above that. The MACD had a positive cross Thursday and the RSI is rising. Support can be found lower at 7.94 and then 7.50.

3. Mastercard, Ticker: MA
Mastercard seems headed to the top of its recent channel, if it can get through the 50 day SMA at 207.43. Resistance would be seen first at 210 then 215.96. Support can be found at 198 then 195 lower. The MACD is about to cross and RSI just pierced 50.

4. Micron Technology, Ticker: MU
Micron is breaking higher out of a descending wedge. There is resistance higher at 7.50 and then 7.85. The RSI and MACD both re-enforce a move higher. There is support at the wedge.

5. Mellonax Technologies, Ticker: MLNX
Above the 17.15 resistance this stock has clear air to 18.45 and then resistance at 19.80 higher. There is support at 16 to the downside. MACD gives it a chance, RSI not so sure.

6. Mindspeed Technologies, Ticker: MSPD
Mindspeed is testing the top of a downward trending channel just above the 200 SMA. If it can pierce and hold above the channel it can run to 7.90 and then sees resistance at 8.05. A rejection at the channel boundary will push it lower to 7.14 and then 6.50. MACD and RSI say it can go higher.

7. Endo Pharmaceuticals, Ticker: ENDP
Endo broke higher a few weeks ago and then tested and held the rising 20 day SMA. It is ready for new highs! Support can be found at 27.50 to 28.

8. KBR, Ticker: KBR
If KBR can get through 24.55, a key resistance/support level for many years, then the next resistance is at 28 and it looks likely to test it. Support on rejection at 24.55 can be found at 22.42-.50.

9. Select Comfort Corp, Ticker: SCSS
This was a top 10 pick last week and it seems warranted again. It is closing in on resistance at 6.50 and if it can get through then then is resistance higher at 7.30-.38. Support lower can be found at 6.00. MACD and RSI say that it still has room to run.

10. Mosaic Corp, Ticker: MOS
Mosaic is stuck near resistance at 60 with failing RSI and MACD. There is support lower at 56 and then 53.60. On an up move there is resistance at 62.20

Bonus Idea: Genoptix, Ticker: GXDX
I just noticed that I have the last 10 posts on this stock on the stream. This stock has been flagging for some time after its big fall. It looks like a potential play both ways. Above 18.10 there is some resistance at 19.50and then 22. To the downside, below 16.90 there is support at 15.50 and then nothing lower. With the MACD and RSI back in the neutral range something could happen soon. Get ready.

Trade'm well!

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