Let's take a look at Jim Cramer's game plan for this week from a technical perspective. These are his "Mad Money" trading recommendations using their exclusive Stock Screener. You listened to him on "Mad Money" Friday or you read his views on these companies on Real Money, now here are the charts and indicators.
No matter who wins the election, Jim Cramer says, there are ways to make money. Let's take a closer look, adding the charts to the fundamentals.
Horizon Pharma (HZNP) has sold off sharply over the past two to three months (see the chart above). Prices are trading below the declining 50-day and the downward sloping 200-day moving average lines. The On-Balance-Volume (OBV) line has been moving lower the past 12 months and only made a modest recovery in May-August when HZNP rallied.
A rally without sustained, aggressive buying is typically not going to last. The OBV line moves lower when the volume of shares traded is heavier on days when the stock closes lower. This is a sign that traders want to get out of long positions. On the positive side, there may be a bullish divergence between the lower lows in price in September and November and a higher low from the momentum indicator.
In this three-year weekly chart of HZNP, above, we can see that prices recently closed sharply below the slightly declining 40-week moving average line. The weekly OBV line has been declining the past three months and the Moving Average Convergence Divergence (MACD) oscillator just moved below the zero line for an outright sell signal.
Prior declines for HZNP found support in the $15-$13 area. The area could hold again, but like the March-May period, we may see a choppy trading affair before a sustained up-move gets under way.
MGM Resorts International (MGM) (chart above) has all the right stuff. The stock has been in a sustainable uptrend from its February low. Prices are above the rising 50-day simple moving average line and above the slower to react 200-day line.
The daily OBV line turned up with prices and has maintained its uptrend even as prices had some temporary pull backs. Buyers of MGM have been more aggressive for the past nine months, with move volume traded on days when MGM has closed higher.
In the bottom panel is the MACD oscillator, which above the zero line (positive) and poised for a new crossover buy signal.
This three-year weekly chart of MGM, above, is in good technical shape. Prices are above the rising 40-week moving average line. The weekly OBV line has been going up steadily and confirms and supports the price rally. The weekly MACD oscillator has been above the zero line since April and is still in a bullish configuration.
I would look for the shares of MGM to test their 2014 price highs in the weeks ahead.
Homebuilder D.R. Horton (DHI) has been in a downtrend the past four months. The 50-day moving average just declined below the 200-day moving average for a bearish death cross. (In early May there was a bullish golden cross of these two popular moving averages.)
The OBV line started moving lower in July as prices peaked. Prices broke below and have been trading below the May lows and gives a bearish slant to things but a bullish divergence can be seen between the lower lows in price in August through late October and a rising momentum indicator. This bullish divergence tells us that the rate of decline is slowing and this can sometimes foreshadow a price rally.
This three-year weekly chart of DHI, above, suggests that the shares could be vulnerable to weakness despite a bullish divergence on the daily chart. DHI is below the flat 40-week moving average line. The weekly OBV indicator peaked in April and did not make a new high in July when prices did.
In the lower panel is the MACD oscillator, which crossed to a liquidate longs sell signal in August and crossed below the zero line in October for an outright sell signal. If DHI makes a reversal to the upside it will have to start with the daily chart.
