Your 15 Trade Ideas For The Week Of 1-28-13

Good setups have been pretty easy to come by lately.  From last week’s post we had CF up 5%, SCHW up 3%, APC up 5%, and the big winner was KBH up 14%.

Of course most of this is due to the overall market just grinding higher.

FDX
$FDX

A nice proxy for the overall market, $FDX is moving into 5-years highs which signals that the economy is getting back on track.

I actually was thinking to myself that we are now in a swing trade type of market, and that thought, plus the ease of gains lately tells me we are probably in for a pullback soon.  But as always, price action is what we follow.

I have been asked what the best way to use this weekly list is, and here are my suggestions.

First you can use it for a day trade or very short-term trade template (2-4 days). Each week there are usually a couple of candidate that make a nice quick move. However, the other way you can use it is for a longer term template.  I tend to be “early” on some picks, so if you can get a nice entry you might be able to hold them a few weeks.  Here are some examples from recent posts.

GS
$GS

I highlighted a buy area in $GS back in late December, indicated by the green arrow. You could have bought it there and pretty much held it since for about a 17% gain.

TEX
$TEX

$TEX is another stock from a post in early December that has gone on to a 25% gain. Unfortunately, I got stopped out of it.

Now on to this week’s list.

ADM
$ADM

$ADM recently recaptured its 200ma and is basing below a resistance level.

ADP
$ADP

$ADP is getting ready to breakout into 12-year highs.  The script here would be anticipation of the jobs market coming back.  Needs a few days of sideways work first.

BIDU
$BIDU

$BIDU is a holdover from last week.  This very tight flag just below the top of a large down channel could be the launching pad for a move and a change of trend.

BTU
$BTU

If you look at the bottoming pattern in the oval area, there is something of an inverse H&S pattern.  The consolidation afterwards along the 200ma makes me think $BTU is getting ready to move.

EGLE
$EGLE

If the economy is really on a comeback, this shipper should be near a bottom.  The tight flag gives you a good risk/reward setup to get long on a breakout in $EGLE.

FITB
$FITB

Financials have been hot lately, and this tight flag on $FITB after breaking into 5-year highs is a great setup to get long.

GRPN
$GRPN

Arf, arf.  Yes, $GRPN has been a dog, BUT……!!!  If it can break this resistance level at $5.50, it has a good chance to get to at least the 200ma around $6.90 or even the gap fill at $7.40 setting anywhere from a 1:3 to 1:8 risk/reward ration depending on how tight you set the stop.

HAR
$HAR

After putting in a double bottom, $HAR is consolidating in a tight range at the top of a very large “W” pattern.

IBB
$IBB

I highlighted $IBB, a biotech ETF, back in mid-November, noting that it made a “double tap” off its 200ma.  Since then it has set up nice, consolidating right below it’s all-time high.

KEYW
$KEYW

$KEYW is a holdover from last week.  I just like this pattern.

LLY
$LLY

Keeping in the biotech mode, $LLY is consolidating nicely under 5-year highs.

MGM
$MGM

Last week I noted that well run casino companies were on my radar to be the big winners this year.  $MGM is providing another chance to get long on a break out here if you missed the first one.

OXY
$OXY

$OXY looks like it may have bottomed here.  Nice consolidation and now is breaking past the 200ma.

POL
$POL

My traditional “I don’t know what they do stock,” but this consolidation zone after breaking out, right under all-time highs looks nice.

WLT
$WLT

I hate trading $WLT and in fact is was on my post, “The 5 Hardest Stocks To Trade….Ever!” Having said that, the stock is getting to a point where resistance and the 200ma are converging.  A break of that area could finally send this perpetual buyout stock flying.

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