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This Week's Top 5 Trade Ideas: COF, DFS, DFT, ESRX, EW

Published 05/16/2016, 01:40 AM
Updated 05/14/2017, 06:45 AM
XAU/USD
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US2000
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SPY
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QQQ
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ESRX
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DD
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DFS
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COF
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DX
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GC
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CL
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EW
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IWM
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DFT
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SSEC
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Here are the Rest of the Top 10:

Capital One Financial (NYSE:COF)
COF Daily Chart

Capital One Financial, COF, fell from a high near 82.50 in November last year finding a bottom in late January almost 30% lower. Since then it has moved higher in a couple of steps to a lower high in April. The pullback to support saw a minor bounce and now a retest. With the MACD falling and the RSI dropping and near a move into the bearish zone, it is time to look to participate to the downside on a break lower…..

Discover Financial Services (NYSE:DFS)
DFS Daily Chart

Discover Financial, DFS, fell through December and January, finally finding support in February 25% lower. It ran higher from there, culminating with a gap up in April back to the November high. Since then it has consolidated with the RSI pulling back from an overbought condition and now crossing the mid line, while the MACD falls. Look for continuation lower Monday to participate to the downside…..

Dupont Fabros Technology Inc (NYSE:DFT)
DFT Daily Chart

DuPont (NYSE:DD) Fabros Technology, DFT, had a strong run higher out of consolidation and a retest at the 200 day SMA in January. It stalled in April and had a minor pullback before reversing back higher. The RSI is bullish and rising and the MACD is moving up. Look for a new high to enter long…..

Express Scripts Holding Co (NASDAQ:ESRX)
ESRX Daily Chart

Express Scripts, ESRX, fell hard and fast in January, breaking below long term support. It bottomed and consolidated there through mid April before jumping back higher. It failed to close the gap in April and pulled back to support. Then it bounced to a lower high, before falling back to support. The RSI is breaking below the mid line and the MACD is crossed down and falling. Look for a break of support to short the stock…..

Edwards Lifesciences (NYSE:EW)
EW Daily Chart

Edwards Lifesciences, EW, was a Top 10 idea to the long side last week. The trigger to buy never came though and the stock fell back to support. Now it is pressing on that support with the Bollinger Bands® opening to the downside and the RSI and MACD falling. Look for a break of support to short the stock…..

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 May Options Expiration sees the equity markets continuing to look weak.

Elsewhere look for gold to consolidate in its uptrend while crude oil continues higher. The US Dollar Index looks to continue the bounce in the downtrend while US Treasuries are biased higher. The Shanghai Composite and Emerging Markets look better to the downside.

Volatility looks to remain subdued though 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), despite their moves lower. Their charts look better to the downside with the IWM the worst then the SPY and the QQQ with the best chance to consolidate and reverse. 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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