Top 10 Ideas for the Week of August 23, 2010

After looking at over 500 charts I have found some good setups for the week. This week's mix contains a balanced 5 short setups, and 5 long ideas. These were selected in and should be viewed in the context of the broad market trend reviewed Saturday which looks good for more upside on both the daily and weekly charts for Gold the US Dollar Index and Treasury Bonds. The Equity market could see a positive move in the very short term but the weekly charts point lower. Here are the top ten, short set ups first, tonight in no particular order:

1. MIPS Technologies, Ticker: MIPS


Breaking above the rising channel. If it gets above 6.50 then it sees resistance at 7.21 followed by 8.32. Support is at the channel near 6.25.

2. Akamai Technologies, Ticker: AKAM

It is breaking resistance at the 46.76 area which has stalled it twice before. Now there is resistance at 51 and then 56 from 2007. A rough measured move looking back from the run from 26 to 36 then consolidation between 36 and 46 also puts 56 as the target.

3. Staples, Ticker: SPLS

Watch this for confirmation of the bullish hammer candle from Friday. If it confirms then there is nothing to do here. If it fails then when the stock cracks 18.50 to the downside the next support level is 15.50.

4. Sears Holdings, Ticker: SHLD

This stock failed to rise from a long run down and now is testing 60 again. If it breaks below 60 then 55.50 is the next support. The flag after the latest run down suggests it will try very soon.

5. 51job Inc, Ticker: JOBS

A Top 10 Pick last week, broke out and is flagging now. If it gets above 30 it can run to 32. Support is at 29.20.

6. EnergySolutions, Ticker: ES

the bullish hammer candle printed Friday held the 4.40-4.50 support area. If confirmed it is ready to go higher and sees resistance at 5.17 followed by 5.70.

7. Callon Petroleum, Ticker: CPE

Although this broke down on Friday the strong bearish candle points lower still. Support is first at 4.25 and then stronger at 4.00.

8. Intuitive Surgical, Ticker: ISRG

Another strong move down on Friday on big volume. Looks like more downside. Underneath 290 it sees support at the 275-283 area and then stronger support at the 248-261 range.

9. Delcath Systems, Ticker: DCTH

This printed a bullish hammer candle on Thursday and has held above support at 6 on Friday. If it continues to hold resistance above is at 6.81 on the way to 7.70.

10. Visa, Ticker: V

Visa has been a short idea on the Top 10 list previously and now looks to print some money. Friday's big down move on better volume cracked 70 but came back to hold above it. It still looks weak and a hold below 70 could lead to the 57 area as a target.

Bonus Idea: GMX Resources, Ticker: GMXR

What did this company do wrong? The stock has been hammered lately and looks like it has more room to the downside. If you are not already short this one support lies at 3.43 nearly 25% below current levels.

I wish to apologize to those that watch this process unveil throughout the weekend for the lack of transparency this week. A recent move and technology issues forced me to cut a process that usually takes about 10 hours into about 3hours. The most time consuming part of this process is posting all the charts that do not make the list. It is necessary to review them all, and I did this weekend as always, but had to cut back on the postings in order to get this out. Back to normal next week. Trade 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.