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5 Trade Ideas For The Week Of October 10, 2016

Published 10/10/2016, 01:45 AM
Updated 05/14/2017, 06:45 AM
US2000
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SPY
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QQQ
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HUM
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DX
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CL
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CX
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IWM
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INFN
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FL
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CBI
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SSEC
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Chicago Bridge & Iron Company NV (NYSE:CBI)

CBI Daily Chart

Chicago Bridge & Iron, CBI, had settled into a consolidation after falling through January. That lasted until August, over 6 months. But instead of breaking consolidation to the upside it broke down, eventually finding a new bottom in September.

Since then it has been moving higher Friday it hit the short term support area from the beginning of September. It has a RSI climbing toward the bullish zone and a MACD crossed up and rising. A push through this resistance is a reason to participate to the upside…..

Cemex SAB de CV (NYSE:CX)

CX Daily Chart

CEMEX, CX, moved higher off of a bottom in January. It paused in consolidation from April to June before a second move higher that peaked in early August. Another consolidating pullback ended with a touch at the 100 day SMA in mid September and it has been rising since. Last week it pushed back to its 50 day SMA and held there.

The RSI is knocking on the edge of a move into the bullish zone and the MACD is crossed up, rising and positive. Look for a break over the end of September high to participate to the upside…..

Foot Locker (NYSE:FL)

FL Daily Chart

Foot Locker, FL, fell out of consolidation in April and found support in June. Making a low after the Brexit vote, it has risen ever since. It pulled back to its 20 day SMA from a peak in August and is now back at that level as resistance. The RSI is in the bullish zone and the MACD is flat after falling, and positive. Look for a push higher to participate in the upside…..

Humana (NYSE:HUM)

HUM Daily Chart

Humana, HUM, was slammed lower to start July, and after 2 weeks of settling rose almost as fast. But it never recovered fully. Since mid-August it ran lower in a falling channel until reaching its 200 day SMA.

That has held as support and forced price to morph into sideways consolidation. With the Bollinger Bands® squeezing, look for a move over consolidation to participate to the upside…..

Infinera Corporation (NASDAQ:INFN)

INFN Daily Chart

Infinera, INFN, has been trending lower since April. It has vacillated between the 50 day and 100 day SMA as resistance as it heads lower. But since August it has been moving sideways in a channel and ended last week pressing against the top of that channel.

The RSI is rising and on the edge of the bullish zone while the MACD is rising and positive. Look for a push over resistance to participate to the upside…..

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 next week sees the equity index ETF’s look like they need a breather in the short term.

Elsewhere look for Gold to continue lower while Crude Oil continues to the upside. The US Dollar Index looks strong but range bound while US Treasuries are biased lower again. The Shanghai Composite is biased to the drift to the downside Emerging Markets look like they will continue to consolidate in the uptrend.

Volatility looks to remain in the lower end of the normal range keeping the bias higher for the equity index ETF’s SPDR S&P 500 (NYSE:SPY), iShares Russell 2000 (NYSE:IWM) and PowerShares QQQ Trust Series 1 (NASDAQ:QQQ). Their charts all look to continue consolidating in the short run with the QQQ looking the best for upside and the SPY next, with the IWM at risk for a pullback. Use this information as you prepare for the coming week and trad’em well.

DISCLAIMER: 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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