Trade Ideas: SFC, RA, ELX, ENH, SJW, XLB, ILF, MCS

Tech markets pushed breaks to new highs which started the week off in a positive tone. The level of buying was improved from last week, but still not stellar given the significance of the tech breaks; the Trade Ideas scan took 5 minutes to come up with 8 stocks.

Only the Latin America 40 Index iShares (ILF) made a bullish cross of the 50-day MA with the 20-day MA inside the last 2 months. Reckson Assoc Realty Corp (RA), Materials Select Sector (XLB) and Emulex Corp (ELX) pushed to new closing highs.

The 1-year charts shows a lengthy cup-and-handle pattern in Reckson Assoc Realty (RA); stops on a loss of $42, projected target of $52. Materials Select Sector (XLB) and Latin America 40 Index (ILF) trades close to 52-week high resistance; watch for the development of consolidation handles before pushing higher (for the ILF, this could be a move back to $150 and for XLB look for a retracement to $32.50). Trend traders can look to Marcus Corp (MCS).



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