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5 Trades For Monday: Adobe Systems, Boeing, CME, Ulta Beauty And United Tech

Published 07/16/2018, 01:01 AM
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Adobe Systems (NASDAQ:ADBE)
ADBE Daily Chart

Adobe Systems moved higher out of consolidation in May to a top in June. It pulled back to the 50 day SMA and then reversed higher at the end of the month. It is now at the prior high with the RSI rising and bullish and the MACD crossed p and positive. Look for a push to a new high to participate.

Boeing (NYSE:BA)
BA Daily Chart

Boeing had a strong January, rising to a top at the end of the month. It held up well when the market initially pulled back and then made a higher high at the end of February. Another deeper pullback consolidated for 2 months before a move higher in May to a higher high in June. It pulled back again to a higher low before reversing last week. It ended the week moving into a gap with the RSI rising toward the bullish zone and the MACD crossed up and nearly positive. Look for continuation to participate.

CME Group Inc (NASDAQ:CME)
CME Daily Chart

CME had a long strong run higher until morphing into consolidation in March. It tried to move higher again into June but met resistance and pulled back. It found support at a higher low and started back to the upside last week. The RSI is rising and bullish with the MACD crossed up and about to turn positive. Look for continuation to participate higher.

Ulta Beauty Inc (NASDAQ:ULTA)
ULTA Daily Chart

Ulta Beaut made a bottom in October and started higher. It met resistance in January and pulled back to retest the low in March. Another move higher confirmed a double bottom at the end of April and then it quickly met resistance and consolidated. In June it pulled back again, this time to the 100 day SMA, where it found support. It has been rising since and Friday pushed up to a higher high. The RSI is rising in the bullish zone with the MACD crossed up and positive. Look for continuation to participate.

United Technologies (NYSE:UTX)
UTX Daily Chart

United Technologies rose from a September low to a top in January. It pulled back to the 100 day SMA and bounced, continuing higher to retest the top. It dropped again though and confirmed a double top as it touched the 200 day SMA at the end of March. After a short consolidation it fell further, finding support at the November low. It drove higher fast from there to a high over the 100 day SMA. Since then it has consolidated until pushing to a higher high Friday. The RSI is pushing up in the bullish zone with the MACD crossed up and rising. Look for continuation to participate.

Up Next: Bonus Idea

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 heading into July options expiration week sees there has been a shift in short term leadership in the equity markets back to the QQQ from the IWM with the SPY continuing to improve.

Elsewhere look for Gold to continue lower while Crude Oil consolidates in its uptrend. The US Dollar Index continues to pause in its uptrend while US Treasuries continue to move higher. The Shanghai Composite may be building a bottom after a long drop and Emerging Markets are showing signs of a possible reversal to the upside after their long drop.

Volatility looks to be back at extreme low levels and holding keeping the bias higher for the equity index ETFs SPY, IWM and QQQ. Their charts all look strong on the longer time frame with the QQQ leading the charge. On the shorter time frame signs of a pause are showing in the IWM while the SPY and QQQ are continuing higher. Use this information as you prepare for the coming week and trad’em well.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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