Top Trade Ideas - August 14th

After a thorough market scan, here are our top watches ahead of the week.

Last week failed to change the negative sentiment from the one before. It was a mix of highs and lows but ultimately ended lower. Volatility is on the rise, as the below chart shows.

If Friday’s low holds for indices like the S&P 500 or Nasdaq, we could see some of the recent losses recovered. However, a fall below last week’s low sets up a possible 3% fall lower.

In FX, last week gave us some erratic price action. The US dollar initially weakened from the CPI print yet reversed the losses to finish the week higher. GBP also posted gains from the better-than-expected GDP print on Friday but gave back all gains as we closed.

Up ahead, we keep an eye on UK inflation and the RBNZ central bank meeting, both on Wednesday.

Below are our top ideas across US equities, FX pairings and indices.

Equities

Honeywell International is the first equity idea this week. Price is starting to (finally) find some buyers after a heavy-hitting sell-off. A positive change in the market could see these buyers continue. If so, we’d be watching the $200 level for a retest.

TRADE IDEA - HONEYWELL INTERNATIONAL

Entry: 191.00

Stop Loss: 186.00

Take Profit: 200.00

MongoDB is our short equity idea this week. Price fell into a large gap and also has strong momentum to the downside. It would be even better if there was a retest of the previous support, now resistance, before going long. Our target would be a half gap fill, around 330.00.

TRADE IDEA - MONGODB SHORT

Entry: 365.00

Stop Loss: 375.00

Take Profit: 330.00

We look at three more popular names in the rest of the article.