Top Trade Ideas for the Week of August 18, 2014: The Best

August 17, 2014 2:21 PM

Here are the Rest of the Top 10:

Allegiant Travel, Ticker: $ALGT

Allegiant Travel, $ALGT, is moving up against resistance for the third time, from a series of marginally higher lows. The RSI is at the cusp of entering the bullish zone and the MACD is rising in support of more upward price action.

Alexion Pharmaceuticals, Ticker: $ALXN

Alexion Pharmaceuticals, $ALXN, is also approaching a resistance zone for the third time. Its RSI is in the bullish range and the MACD is moving up.

CBOE, Ticker: $CBOE

CBOE, $CBOE, is pressing at resistance as well as it sits near the 200 day SMA. The RSI is bullish and rising with a MACD doing the same, both supporting further upside.

Cummins, Ticker: $CMI

Cummins, $CMI, has been in a rising channel since July 2013. The past two weeks have tested the bottom of the channel and held. The RSI has worked of a technically oversold condition and trending higher with a MACD that is rising and crossed up last week. look for a break over short term resistance to move toward the SMA’s above and the top of the channel.

Intelliquent, Ticker: $IQNT

Intelliquent, $IQNT, is a bottoming and reversal play. The fast move lower at after their earnings release July 24th has settled and price is reversing. The RSI has worked off the technically oversold condition and is rising and the MACD has crossed up.

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which, as the books are closed on the August Options Expiration and we head into the last week of Summer sees the equity markets are still with some turbulence. Elsewhere look for Gold to bounce around the 1300 level while Crude Oil continues to be biased lower, but mindful of the bounce Friday. The US Dollar Index looks toppy and possibly ready for a correction lower while US Treasuries continue to be biased higher. The Shanghai Composite and Emerging Markets are consolidating but with the Chinese market biased higher and Emerging Markets having trouble at resistance and looking toppy. Volatility looks to remain low keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts show that all look good on the longer timeframe but the QQQ the strongest in the short term with the SPY close behind and the IWM the weakest. Use this information as you prepare for the coming week and trad’em well.

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