5 Trade Ideas for Monday: Aetna, Altera, Alliance Resource Partners, McKesson and Valeant Pharmaceuticals
5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers.
Aetna, $AET,pulled back with the market, making a lower low and breaking below the 200 day SMA for the first time since November 2012. The recovery finds it back at resistance and consolidating. As it does, the RSI is in the bullish zone but looking a little tired and the MACD is leveling. A break higher could reignite the trend up.
Altera, $ALTR, pulled back to the November 2013 lows with the market but has been on fire since. The stair step higher finds it consolidating over the SMA's and attempting a break higher Friday. Both the RSI and MACD support more upside.
Alliance Resource Partners, Ticker: $ARLP
Alliance Resource Partners, $ARLP, also did the 'V' thing with the market, quickly recovering to the prior high. A quick pullback and then move higher Friday is starting to look like an Inverse Head and Shoulders pattern, should it break the neckline at about 49. The RSI is bullish and turning back higher and the MACD is flat but positive.
McKesson, $MCK, had a strong trend higher until it made the 'V'. Now it is recovering from a small pullback, and testing trend resistance after holding at 200. The RSI is in the bullish zone and rising with a MACD that averted a cross down and is rising now as well.
Valeant Pharmaceuticals, Ticker: $VRX
Valeant Pharmaceuticals, $VRX, came back from the October 'V' to prior resistance and a new higher high. Recently a mini-V sees it back at that high, and 6 month resistance. There is a complex Inverse (bashed in) Head and Shoulders at work as well. The RSI is rising and bullish while the MACD is about to cross up giving a bullish signal.
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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 the last full week before the Holiday season and November Options Expiration, sees the equity markets continuing to look better on the longer timeframe than on the daily. Elsewhere look for Gold to continue the bounce in its downtrend while Crude Oil heads lower. The US Dollar Index looks to continue to move sideways with a chance of a pullback while US Treasuries are level in their pullback. The Shanghai Composite may consolidate in the uptrend while Emerging Markets muddle along sideways with a slight upward bias. Volatility looks to remain subdued keeping the bias higher for the equity index ETF's SPY, IWM and QQQ. Their charts are not as firm in that regard though, with the IWM in consolidation mode short term and the SPY and QQQ stronger but also looking better in the longer timeframe. Use this information as you prepare for the coming week and trad'em well.
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