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.

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.

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

$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 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.

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.

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.

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

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.

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

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

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

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

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

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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Brilliant stuff like this rains down like..well, rain, on my stream during the week. If you want to get wet, follow me on Twitter and StockTwits. You can also pick up my book Trading – The Best of the Best: Top Trading Tips For Our Times by clicking here.