Top Trade Ideas for the Week

Och-Ziff, Ticker: $OZM

Och-Ziff, $OZM, started falling in June, losing over 60% of its value before finding support and bouncing in November. It consolidated in a bull flag after an initial bounce and it pressing higher again. The RSI is knocking on the bullish zone while the MACD is leveling after a run higher. Look for a move over Thursday’s high 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, heading into the shortened Christmas week sees the equity markets looking weak in the short with the SPY weak in the intermediate term as well.

Elsewhere watch Gold for a bounce in its downtrend while Crude Oil continues lower. The US Dollar Index looks strong and ready for more upside while US Treasuries are mired in broad consolidation. The Shanghai Composite is biased higher in consolidation and Emerging Markets are biased to the downside.

Volatility looks to remain elevated keeping the bias lower for the equity index ETF’s SPY, IWM and QQQ. Their chars concur on the daily feed after back to back strong down days, while the IWM and QQ are nearing support in prior consolidation channels on the intermediate view. The SPY looks to be weaker rolling lower on the longer view. Use this information as you prepare for the coming week and trad’em well.

This post originally appeared on Dragonfly Capital