#$ntap

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Automatic Data Processing, Ticker: $ADP

Automatic Data Processing, $ADP, comes into the week at resistance. It has a RSI entering the bullish zone with the MACD positive. look for a push over resistance to participate…..

General Dynamics, Ticker: $GD

General Dynamics, $GD, comes into the week breaking short term resistance. It has a RSI in the bullish zone with the MACD positive. Look for continuation to participate…..

JP Morgan Chase, Ticker: $JPM

JP Morgan Chase, $JPM, comes into the week at resistance. It has a RSI in the bullish zone with the MACD positive. Look for a push over resistance to participate…..

3M, Ticker: $MMM

3M, $MMM, comes into the week attempting to move up off a bottom and near resistance. It has a RSI rising toward the bullish zone with the MACD positive. Look for a break over resistance to participate…..

NetApp, Ticker: $NTAP

NetApp, $NTAP, comes into the week at resistance. It has a RSI in the bullish zone with the MACD positive. Look for a push over resistance to participate…..

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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 with the June Quadruple Witching and FOMC meetings in the books, saw equity markets show continued strength.

Elsewhere look for Gold to continue its consolidation under 2000 while Crude Oil consolidates in a broad range. The US Dollar Index continues to drift lower in the broad consolidation while US Treasuries also move sideways. The Shanghai Composite looks to continue the short term move higher while Emerging Markets move up in consolidation.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

BioMarin Pharmaceuticals, Ticker: $BMRN

BioMarin Pharmaceuticals, $BMRN, started heading lower in February and found a bottom at the end of September. Since then it has reversed higher and making ts first higher high. The RSI is rising into the bullish zone and the MACD moving up to a positive cross. Look for continuation to participate…..

Darden, Ticker: $DRI

Darden, $DRI, was on a steady plod higher until it made a top in September. It gapped down from there and continued through the 200 day SMA to a bottom last week. It started back higher Friday. The RSI also turned back up with the MACD crossing up. Look for continuation to participate…..

Honeywell, Ticker: $HON

Honeywell, $HON, peaked in early July and pulled back to its 200 day SMA. A bounce to a lower high was followed by another touch at the 200 day SMA and now the move back higher. The RSI is rising and bullish with the MACD positive and moving higher. Look for continuation to participate…..

Norfolk Southern, Ticker: $NSC

Norfolk Southern, $NSC,consolidated at a top from April through July before moving lower. It found support in August and bounced and then retreated again to the low in October. Since then it has been moving up and made a higher high last week. It has a RSI in the bullish one with the MACD rising and positive. Look for continuation to participate…..

NetApp, Ticker: $NTAP

NetApp, $NTAP, started lower out of a bounce in April. It gapped down and leveled for 10 weeks before a second gap and fall to the August low. Since then it has been moving higher, bouncing off of resistance in September and the rising to it again. The RSI is rising in the bullish zone with the MACD positive and moving up. Look for continuation to participate…..

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 with the run up week to the October FOMC meeting ending, saw equity markets make a strong move, led by the small caps and punctuated by a new alltime high in the Nasdaq 100.

Elsewhere look for Gold to continue to build its bull flag while Crude Oil moves higher in broad consolidation. The US Dollar Index looks to continue to drift to the upside while US Treasuries resume their pullback. The Shanghai Composite looks to continue to churn in consolidation while Emerging Markets rise in broad consolidation.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers:

Boeing, Ticker: $BA

Boeing, $BA, ended a long, strong run higher in February. Since then it has consolidated under resistance with a series of higher lows since the April low. Coming into the week it is at resistance and has a RSI rising and bullish with the MACD positive and moving up. Look for a push over resistance to participate.....

BlackRock, Ticker: $BLK

BlackRock, $BLK, made a top in January and started a long descent. It broke below its 200 day SMA in June and has found support recently and been consolidating since the beginning of August. Last week it ended back over the 50 day SMA for the first time since June with a RSI rising to the bullish zone and a MACD about to go positive. Look for continuation to participate.....

Discover Financial, Ticker: $DFS

Discover Financial, $DFS, started a move higher in November, reaching an all-time high in January. It pulled back from there to the 200 day SMA into May and bounced along at that level as support. In August it started higher again and is now near a retest of the January high. The RSI is rising and bullish with the MACD crossed up and positive. Look for continuation to participate.....

Gilead, Ticker: $GILD

Gilead, $GILD, fell from a top at the end of January and continued lower into a gap down in May. It rose from there but stalled as it retraced over the 200 day SMA in a Diamond. It broke the Diamond to the downside in August and found support at the 100 day SMA. It has consolidated there since. The RSI is rising now and the MACD crossed up and headed to positive as the price approaches resistance. Look for a push over to participate.....

NetApp, Ticker: $NTAP

NetApp, $NTAP, seems to just keep going up. But at the end of August it dropped back to its 20 day SMA and then on to the 50 day SMA. This has been a buy point along the way. The RSI is bullish and rising with the MACD about to cross up. Look for continuation to participate higher.....

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 week of the 3rd quarter, sees equity strength has rotated from the small cap and tech names into the large caps of the Dow Jones Industrials and the S&P 500. The leaders are making new all-time highs as the laggards hold steady, a strong market.

Elsewhere look for Gold to consolidate in its downtrend while Crude Oil slowly moves higher. The US Dollar Index looks to continue to the downside slowly while US Treasuries are at the bottom of consolidation and look better lower. The Shanghai Composite is bouncing off a retest of the lows but not safe yet and Emerging Markets are bouncing in their downtrend as well.

NetApp, $NTAP, had a strong run higher following trend support from September 2017 until now.  The last 3 weeks it has consolidated against resistance just under 80 and above the 20 day SMA.  The Bollinger Bands® are squeezing in, often a precursor to a move.   The RSI is rising in the bullish zone with the MACD turning back up, a bullish signal.  The price is extended from the trend support so it is a risk of a pullback.  

But there is a strong trend with a Measured Move higher to 91 on a break to the upside.  There is no resistance over 79.25 and support lower comes at 76.30 and 72.85 then 69.75 and 66.35 before 64.  Short interest is moderate at 5.2%.  The company is expected to report earnings next on August 15th.  It also pays a 40 cent dividend, a 2% yield, and trades ex-dividend July 5th.  

The July options show big open interest at the 75 put strike and then much bigger at the 84 calls.  The August options show that traders look for a $8.50 move between now and expiry with the biggest open interest at the 75 and 80 put strikes.  Call open interest is small.  The September chain shows the biggest open interest at the 75 put and on the call side biggest at 70 and tailing at 85.

NetApp, Ticker: $NTAP

Trade Idea 1:  Buy the stock on a move over 79 with a stop at 76.

Trade Idea 2:  Buy the stock on a move over 79 and add a August 75/70 Put Spread ($1.46) while selling the September 90 Calls ($1.22) to fund it.

Trade Idea 3:  Buy the August 80/July 82 Call Diagonal ($3.70) and sell the July 72 Puts for $3.30.

Trade Idea 4:  Buy the July 79/84 Call Spread ($1.33) and sell the July 75 Put for 56 cents.

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 as we close the books on the 2nd Quarter and prepare for a holiday shortened 4th of July week, sees that the equity markets look to have run out of gas. Maybe the short week will re-energize them. All there indexes had a positive quarter with the IWM just out pacing the QQQ, 7.9% to 6.5% and the SPY gaining 3.1%. The QQQ won the month up 0.9% to the 0.6% for the IWM and the SPY eked out a 0.1% gain. The monthly candles all look toppy with long upper shadows, while the quarterly candles are all looking strong.

Elsewhere Gold looks as it may pause in its downtrend while Crude Oil continues to race higher. The US Dollar Index is pausing in its uptrend while US Treasuries are on the edge of a break out to the upside. The Shanghai Composite may be ready to pause in its downtrend while Emerging Markets are setting up for a possible reversal higher. Volatility looks to remain low but above recent levels keeping the wind at the backs of the equity markets but the breeze blowing softer.

Cisco Systems (CSCO): Cisco has a history of beating analysts estimates and is looking to extend its winning streak tomorrow as it opens up its fiscal 2017. Cisco’s winning strategy includes expanding its product portfolio beyond switching and routing products to high growth markets such as cyber security and Internet of Things. Partnerships with Salesforce and Pure Storage along with the acquisitions of CloudLock will help secure greater market share and support top line growth. Unfortunately, Cisco still derives a large portion of revenue from networking switches and routers which continue to show limited growth and upside. As this continues to show weakness Cisco’s other products will be relied on more heavily to carry performance. Analysts are expecting this quarter to worsen from previous quarters on the back of weakness in its legacy business. Additionally, increasing competition, weak IT spending, and currency headwinds should play a role in sluggish growth this upcoming quarter.

Target (TGT): Target has struggled to establish its foothold in a retail sector dominated by Walmart and Amazon. The past 4 quarters have delivered negative sales growth with expectations of extending it in its upcoming quarterly report. Target has focused on a handful of new initiatives to reverse this ongoing slowdown including expanding its grocery business, ecommerce capabilities and well performing categories while also implementing more strategic marketing campaigns. Lately an assortment of Style, Baby, Kids and Wellness have been the top performing categories that Target is looking to build on. Late last year Target also divested its pharmacy business to CVS which will now be featured within Target stores.

Lowe’s Companies (LOW): The home improvement space has benefited in recent quarters from low interest rates and a broader bounce back in the housing market. To top it off, a better than expected report from Home Depot earlier today sets a favorable tone heading into Lowe’s quarterly report tomorrow morning. That said, Lowe’s typically doesn’t fare as well as Home Depot during earnings season. Home Depot’s dominance market position puts a great deal of pressure on Lowe’s financial performance. Meanwhile greater adoption of ecommerce platforms like Amazon have started to threaten top line growth.

NetApp (NTAP): Revenue has been one of the biggest concerns for NetApp these last few quarters. In last 4 reports, sales have posted negative growth, a testament to the company’s weak products. Increasing competition from companies like Western Digital and HP along with tepid IT spending are expected to add to the company's woes. Future refreshes, launches and more stringent cost controls will help drive revenue and margins in the coming quarters. In the meantime, the company appears to be on its way to another weak report.

L Brands (LB): L Brands’ focus on cost cutting, inventory management, strong product mix and boosting online sales are what will carry future growth. This is generally the same story found with most retailers. However, the company’s industry lead makes it far more likely that they can leverage these initiatives into sales. Its innovative prowess and exclusive assortments is what will really separate them from the competition. The biggest problems L Brands faces come from the need to offer more frequent discounts to push inventory and foreign currency headwinds. These may weigh on margins for the quarter to be reported.

5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers

Home Bancshares, Ticker: $HOMB

Home Bancshares, $HOMB, dropped from a high in November to a low in February. The drawn out move higher ended in June, short of the November high and started back lower. It then made a higher low at the end of June and started to rise again. Last week it reached the November high and consolidated before a move lower Friday. The RSI was overbought and reversed lower and the MACD has now crossed down. Look for continuation to participate in the downside.....

3M, Ticker: $MMM

3M, $MMM, ran higher off of a January low to a high in July at 182. A quick pullback saw it move back to the high and create a consolidation range. Friday it fell to test the bottom of the range. The RSI also fell to the bearish zone and the MACD dropped down. Look for a push through the consolidation zone to the downside to participate lower.....

NetApp, Ticker: $NTAP

NetApp, $NTAP, fell hard and fast from a bounce in November to a low in January. a quick move higher to a March higher then saw consolidation follow for 4 months before a strong move higher began in August. A gap up following earnings then broke the November high and it has been consolidating. Friday saw it drop back to the breakout level with a RSI falling back through overbought territory while the MACD continued lower after a cross down. Look for a break of support to participate in the downside.....

Scotts Miracle-Gro, Ticker: $SMG

Scotts Miracle-Gro, $SMG, moved higher off of the 200 day SMA at the end of June. A small consolidation and then a second step higher brought it to another consolidation. It broke that consolidation to the downside Friday though, with a RSI falling to the edge of the bullish zone and the MACD continuing lower. Look for follow through to participate in the downside.....

Varian Medical Systems, Ticker: $VAR

Varian Medical Systems, $VAR, started a move higher in June that stalled out as it moved into August. A pullback found support and bounced to a higher high and Friday saw it move back lower, to that prior support. The RSI is falling through the mid line while the MACD is dropping. Look for a break below support to participate to the downside.....

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 September Options Expiration sees the Equity Indexes retrenching.

Elsewhere look for Gold to move lower in its short consolidation over 1310 while Crude Oil consolidates sideways. The US Dollar Index looks to move higher in the broad consolidation while US Treasuries are biased lower. The Shanghai Composite looks to continue to trend slowly higher while Emerging Markets are biased to the downside in the short term.

Volatility looks to remain at the top of the normal range adding the bias lower for the equity index ETF's SPY, IWM and QQQ. Their charts all look better to the downside in the short run, but with the SPY and QQQ well outside of their Bollinger Bands, so perhaps ready for a bounce first. The IWM is sitting on its lower Bollinger Band, a good place to bounce if it wants to. Use this information as you prepare for the coming week and trad'em well.

Cisco Systems (CSCO): Cisco’s core business of switching and routing offer very little growth or future upside. For that very reason, Cisco is shifting toward high growth markets including cloud security, data centers and mobile. The company is one of the biggest players in security, garnering over 15% of the market. Mobile and data centers are performing just as well and will continue to be a big component of future growth. Unfortunately, having a hand in so many different markets leaves Cisco exposed to increased competition.

L Brands (LB): L Brands’ focus on cost cutting, inventory management, strong product mix and boosting online sales are what will carry future growth. This is generally the same story found with most retailers. However, the company’s industry lead makes it far more likely that they can leverage these initiatives into sales. Its innovative prowess and exclusive assortments is what will really separate them from the competition. The biggest problems L Brands faces come from the need to offer more frequent discounts to push inventory and foreign currency headwinds. These may weigh on margins for the quarter to be reported.

NetApp (NTAP): Revenue has been one of the biggest concerns for NetApp these last few quarters. In 3 of the last 4 reports, sales have contracted by double digits, a testament to the company’s weak products. Future refreshes, launches and more stringent cost controls will help drive revenue and margins in the coming quarters. In the meantime, the company appears to be on its way to another weak report. Shares are down about 8% in the past 12 months and 22.5% year to date.