Top 10 Ideas for the Week of August 2, 2010

After looking at over 500 charts and posting my thoughts on over 200 of them I have found some good setups for the week. This week's mix is identical to last week's with 8 long setups, two short ideas and one potential break out. These were selected in and should be viewed in the context of the broad market trend reviewed Friday which looks stronger for gold and oil. The US Dollar Index seems to be headed to the woodshed for a further beating and US Treasury Bonds may drift to the top of their range. Less volatility in the volatility index and a weaker dollar should make it easier for stocks to rise from what looks like a minor bias to the upside for IWM to a bullish indication for SPY. Here are the top ten, tonight in no particular order:

1. Endo Pharmaceuticals Holdings, Ticker: ENDP


If it gets above the triangle at 24.85 then there is some resistance at 26 but a target of 32. Support lower on a rejection of the triangle bound is massive, as all 4 SMA 20/50/100/200 and the triangle triangle bottom.

2. RINO International Corp, Ticker: RINO


Could not get above the 15.50 top from June and now it is looking for support at the 50SMA 13.13. This is the potential entry point. If it holds it should re-challenge the 15.50 top, with 12 below as support.

3. Caribou Coffee Co., Ticker: CBOU


Flagging above the recent 10.52 resistance. Now it is ready to pop to 11.50 resistance then 12.90 both from near the issuance 5years ago. Support is at 9.73 below and then the 10.52 area.

4. Crocs, Ticker: CROX


Broke the 12.28 resistance level so ready for higher. The RSI says it is getting overbought as it is above 70 but it can stay overbought for sometime and there is no resistance until 15.49. Support below is at 12.28 then 11.30.

5. Anadarko Petroleum Corp, Ticker: APC


It reclaimed and is holding a range between 49.08, the Resistance/Support line, and the 50.52 area. Could break either way. Above 50.52 the first resistance is at 55 and then 56.68. A break below 49.08 sees support at 44.95. Nearly 10% either way. August 49/50 split straddles went out at 4.26, anticipating this move will happen. Better return in the stock.

6. American International Group, Ticker: AIG


It is holding the break above the descending triangle well. There is resistance 40 then 42.5 above. Then the real money kicks in. Support lower is at 36.06.

7. Jefferies Group, Ticker: JEF


There is a flag forming after the recent move higher, ranging between the 100 and 200SMA, 24.16 and 24.81. Looks like it will break higher. The target on a break is 27.50. There is support below at 24 then 22.79.

8. Emulex Corp, Ticker: ELX


8.70 has been a big area of support in the past and it is testing it now. On a break lower the first support is at 7.75 followed by 7.26. Resistance is at 9.90 if it bounces.

9. NCR Corp, Ticker: NCR


It rejected 14.35 last week and is now looking for support at 13.42. If it finds it there and holds resistance is at 14.35 for a 7% win.

10. Research in Motion, Ticker: RIMM


It broke above the 50SMA Friday and finished at resistance near 57.5 and filled the gap down from late June. it is ready for a move higher now to the 63.20-63.86 resistance area. Support below is at the 50SMA at 55.25.

Bonus Idea: National Bank of Greece, Ticker: NBG


Come on, all of the European banks are okay and the National Bank of Greece is rising. You have to be kidding me. This at the top of a Dead Cat Bounce at the 100SMA. RSI is falling and the MACD is rolling over. Target is 2.50 or the 50 SMA whichever is lower.

No Top 10 List next week as I will be taking a short vacation. Back the following week. Trade'm well!

Top 10 Ideas For the Week of June 21, 2010

Reviewed over 500 charts and posted over 150 this weekend. It was an interesting quadruple witching week. Gold is just flying, no questions about it, and the dollar appears to need some more time to consolidate. Oil and the equity indices all seem to be in ranges and need to be watched carefully. When they break the range they will move and you need to be ready. With that backdrop here are some ideas for the week in no particular order.

1. Apple, ticker AAPL


Broke out of a symmetrical triangle and made a new high. Price target is now 300.

2. Rambus Inc, ticker RMBS


Bear flag after a big drop, bodes for another drop. Target is 15.

3. ProShares Ultra Short 20+ Treasury, ticker TBT


Descending triangle completing, watching 37.50 for a break out. A break lower would have a target of 30ish.

4. American International Group, ticker AIG


This stock has historically traded off of Resistance/Support. If it breaks 38 expect a run to 43.82 - 44.82 and beyond that then 54.20/55.90. Above 55.90 there is clear air. Support is at the 200/100SMA.

5. Intercontinental Exchange, ticker ICE


Trying to break out of ascending triangle formed by SMAs and 122.50, target on break out and hold of 130 is 160.

6. Mastercard, ticker MA


215 is a crucial level to watch and can play either way. A break and hold higher sees 227 - 230. Failure sees support at 195 below.

7. Delcath Systems, ticker DCTH


A break below 8.75, leads to 6.93 next and further support then at 6. Make sure it sticks below 8.75 to play.

8. Cliffs Natural Resources, ticker CLF


Rejected at the 100SMA with the 50SMA driving down. Looks to test 200SMA again.

9. Lululemon Athletica, ticker LULU


Strong move higher. 50 is the next resistance and through there can try 60. Support at 44 below and then 39.81.

10. Shanda Interactive Entertainment, ticker SNDA


Descending triangle with support at 38.20. Volume declining, doesn't look good. Support below is at 33.70 - 34.00 area the 30.83. Resistance at the 50/100 SMA convergence at the downtrend line near 43.15 and 200SMA above that.



Bonus Idea: Sears Holding Corporation, ticker SHLD
Daily Chart


Under 76.80 now will see resistance at 70 below.

Trade'm well this week.