Top Trade Ideas - Week Of January 6, 2014: Abbott, Outerwall And More

Here are the Rest of the Top 10:

Abbott Laboratories, Ticker: ABT


Abbott Laboratories, (ABT), is breaking consolidation and near the previous top from the end of November. It has a bullish Relative Strength Index (RSI) and a MACD that is rising to support more upward price action toward the Measured Move higher.

American Eagle Outfitters, Ticker: AEO


American Eagle Outfitters, (AEO), pulled back sharply following their last earnings report, but found support at a higher low. Friday it moved higher confirming the Spinning Top doji to the upside and over the 100 day Simple moving Average (SMA). The RSI and MACD support this uptrend continuing.

Interactive Brokers, Ticker: IBKR


Interactive Brokers, IBKR, has been consolidating for about 6 weeks after a long run higher. The RSI has worked off a highly overbought condition and is now holding near 60, bullish, while the MACD is slowly leveling. The catalyst could be the tight Bollinger bands.

Illinois Tool Works, Ticker: ITW


Illinois Tool Works, ITW, is consolidating after a move higher off of the 50 day SMA. The RSI has pulled back a bit during this consolidation and is no longer technically overbought while the MACD is level. Watch this one both ways.

Outerwall, Ticker: OUTR

Outerwall, OUTR, is approaching the top of a 10 week long consolidation channel. Technically each low in the channel has been higher than the last. The RSI is about to make a higher high and the MACD is crossing up and positive, both supporting a push higher out of consolidation.

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 first full week of 2014 begins sees the markets showing signs of rotation again. Look for Gold to continue to bounce in its downtrend while Crude Oil continues lower. The US Dollar Index looks content to move sideways with an upward bias while US Treasuries consolidate with a bias lower. The Shanghai Composite and Emerging Markets are biased to the downside with the possibility that the Chinese market continues to consolidate. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts show that the SPY and IWM are consolidating their gains with slight pullbacks and look solid, with the slight edge to the IWM, while the QQQ is pulling back and may do so a bit longer still. Use this information as you prepare for the coming week and trad’em well.

Disclosure: 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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