The trend is still up in many stocks though weekly momentum is starting to wane. A few stocks in particular look pretty good for adding 5% in the next few weeks.
American Express (AXP) looks to be coming out of a 3 week sideways consolidation and should head toward 100. I'm buying between 94.10 and 95 with a stop at 93.5. Expecting similar action from MCD though it may be a little slower to move since the daily momentum hasn't turned up yet.
IBM is looking like a high probability to head up to 186-190 from the 181 level. What is particularly interesting about this one is that it may be coming out of an Elliott wave diagonal and these usually result in a pretty sharp reversal. Thus an option play could result in some nice profits. 182.50 strike price calls expiring 7/11 are selling for a buck and should hit around $3.
On the short side, one would have expected GM to be dropping over the last month or two with all of the recalls, but it appears to have needed to make a retracement from the 5 waves down it did January to April. Now it has completed an ABC to near 61.8%. December 35 puts are $2 and should go to $7 since the target is $28 for the stock. Stop at 38.
Trade at your own risk. I am not a professional.
