Top Ten Ideas for Week of 6/7/2010

After a very interesting week here are my top ten ideas for the coming week. 6 short ideas and 4 long in no particular order. Keep in mind the market trend is lower, so longs are counter trend, be careful.

1. Genzyme - GENZ



Failure at 47.50 - 48 sees next support at 45 then 40.50 from 2004 (6 years ago - is that still valid?)

2. SL Green Realty - SLG



Going to test the 100SMA and dotted trendline, failure there sees 49.30.

3. Buffalo Wild Wings - BWLD



Going to test 35.26, failure there sees 30.90, 37.31 is resistance.

4. Chipolte Mexican Grill - CMG



Strong, if holds 142 area should see 156.

5. Electronic Arts - ERTS



A break below the 15.80 support would give a target of 10.80ish, woah!

6. Flowserve Corp - FLS



Cracking 38.2% Fibonacci retracement level, look for 80.79 next.

7. United States Natural Gas - UNG



Love this. Big break out on volume and followed next day with bigger volume. 9.35 coming.

8. United States Steel - X



Broken, 33.50 coming, get short.

9. SanDisk - SNDK



Like a salmon swimming upstream. New highs coming if holds 44.70ish.

10. VMware - VMW



Next key level is 72.87 to the upside, good support Friday.

BONUS IDEA

Priceline.com - PCLN



Inverted hammer says support will hold near 180. If not then look for 157.50, resistance above is at 190.

Inter-Market Connectivity

posted Thursday night:

Looks to me like everything converging on tomorrow. $USDX, $GC_F, $CL_F, $SPX, all right at key levels. Will NFP be the fuel or the fade? 7:27 PM Jun 3rd via StockTwits Desktop

Two things to note initially, first each of these broad market indicators had moved to key short term support and resistance levels on Thursday's close. The dollar index bouncing at 87.40 area, Gold between the 50 SMA and 1227 Fibonacci level, Oil at 74.50 and the SPX at convergence of 20 and 200SMAs. Coincidence? Second, look at the 20/50/100/200 SMAs. All rising for the dollar index and gold, and all falling for crude and the SPX. So at key levels and SMAs showing a bias. Hmmmm. Third, as the catalyst hit they all moved with a singular economic reaction, in the direction of that trend, gold and the dollar rose, and stocks and oil sank. Should you expect this? Yes!

All Markets Are Connected

This blog is about Technical Analysis but even a chartist can benefit from understanding how different markets interact. To me the key is the stronger dollar.



Friday's move indicates that the dollar is heading higher, at least to 89.02 a 100% retrace of the down move from the March 2009 highs to December lows. The break out of the ascending triangle, bounded by the 20day SMA would give a target of about 90. The flying dollar gave a boost to Gold which had retested 1200 earlier,



roaring back $20, putting the recent highs back in sight. It also reversed the up move for Crude Oil (West Texas Intermediate) dropping it nearly $4 from the high of the day back towards the 71.20 support.



Most importantly for this crowd, it drove the SPX down all day until it hit key support between 1057 and 1075.



Understanding and watching this interaction can often give clues as to the direction of the market you are trading before the impact is felt. So keep watching the the broader market for clues and absorb the impact to your world.