5 Trade Ideas for Monday: Expedia, Nasdaq, Northrop Grumman, Packaging Corporation & Tractor Supply

Expedia, $EXPEWealth Strength IndexAAPL is Extremely Up and trending Up, ran from a low in February to a top in July. Since then it has pulled back, first to the 100 day SMA, and then to a low in October under the 200 day SMA. After a retest and undercut of that low it bounced last week and confirmed a double bottom. The RSI is rising and the MACD about to cross up. Look for continuation to participate higher…..

Nasdaq, $NDAQ, has moved higher since the beginning of 2013. It made a top in June and retested it twice before reversing lower into September. The drop has continued and found a low in mid-October before bouncing. The RSI has turned back up as well and is nearing the mid line with the MACD crossed up and rising. Look for continuation to participate to the upside…..

Northrop Grumman, $NOC, started moving lower quickly off of a top in April. After hitting the 200 day SMA it bounce and then fell back again to a lower low. Another bounce was then stopped at the 200 day SMA and it reversed again. Friday saw a pause and intraday price action to the upside. The RSI is oversold and the MACD falling. Follow the price as it moves back up or continues…..

Packaging Corporation, $PKG, had been moving sideways for 8 months until it started lower in September. It broke the 8 month range and accelerated lower into October. It bounced mid-month and then fell back to a lower low. But then a bounce again last week sees it testing the prior bounce high. The RSI is rising with the MACD crossing up. Look for a push higher to participate…..

Tractor Supply, $TSCOWealth Strength IndexAAPL is Extremely Up and trending Up, started higher off of a low in April. It confirmed an Inverse Head and Shoulder by breaking the neckline in May and moved up to the price objective at 80. It slowed there for a short period and then continued higher in August. It reached a top at the end of the month and has consolidated there since. The RSI is rising towards the bullish zone with the MACD crossing up and turning positive. Look for a push over consolidation to participate higher….

After reviewing over 1,000 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the last days of October and the last full week before the midterm elections, saw stocks get rocked. The S&P 500 and Nasdaq 100 have dropped more than 10% from their highs at the end of September with the Russell 2000 more than 15% off its high.

Elsewhere look for Gold to pause in its uptrend while Crude Oil pauses in its downtrend. The US Dollar Index is meeting resistance in its short term uptrend while US Treasuries are digesting their run lower. The Shanghai Composite is searching for a bottom but Emerging Markets are continuing to the downside. Volatility looks to remain elevated and possibly rise further keeping the bias lower for the equity index ETF’s SPY, IWM and QQQ. Their charts look like they agree with that, all 3 in solid short term downtrends and now downtrends on the intermediate timeframe as well. Use this information as you prepare for the coming week and trad’em well.

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.