Trade Ideas

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The current market is frustrating to trade. When the Dow Jones and the S&P 500 are selling off in the midst of a rally in the Russell, it definitely goes without saying that things can become confusing. However, I think that the market will trade higher from here, and that we are climbing a wall of worry off of the lows. I am not placing big bets on that opinion as I am 40% long and 60% cash. I want to stay defensive here with summer tending to be a rangebound grind in the markets.

Today I managed to make two good trades in GNW and FIO using the ACD opening range method. I will start posting charts on my entry and exits points using that process, but I would like to perfect it more before blogging about it. If anyone wants those indicators, just let me know.

I also bought ATRS after reading Zenhunter’s post about it. The chart looks ripe and if a catalyst kicks in then we should see some nice action to the 4.50 area.

Should the market melt up, I have gathered a few long ideas from all areas of the market.

First up is SVU. I picked up a position in this today because of the potential for a short squeeze to occur in these market conditions. The daily chart demonstrated a clean breakout from the channel down pattern. The move did lack volume; however, I discounted that on the premise that it was a shorter week. Minor dips were bought throughout the day and the close was very strong. Also, check the weekly chart to see the clean bull flag. The daily chart is below. Screen shot 2013-07-01 at 10.39.53 PM

Next up is a stock that has shown some relative strength, and worked off overbought conditions on its weekly chart. The name is IPG. The weekly chart bull flag is very clean and manageable. The daily chart is perfectly coiled. It may need a little more time, but a move through 15.00 should send this higher. The weekly chart and daily chart are below.

Screen shot 2013-07-01 at 10.38.39 PM Screen shot 2013-07-01 at 10.39.17 PM

 

I would also be watching the candidates for a hundred dollar roll. Some of those charts look ripe for a breakout. I like WLK, MCD, BLWD, and IWM (haha).

The last trading idea is purely for entertainment. I won’t take it. It is MJNA. The chart looks surprisingly great, and I wouldn’t be surprised if a bunch of newsletters began to pump it. There is a tight pennant with a cleanly defined range settling above the 20MA. I am think this sees a test of its 50MA, and more if the newsletters choose to pour some volume into it. The daily chart is below.

Screen shot 2013-07-01 at 10.38.16 PM

Have a great trading session tomorrow!

 

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