Trade Idea for 10/08/08

No buyers stepped in the last hour this time. On the contrary! The selling actually accelerated at the end of the day. The damage to the charts I look at is extreme. Take a look at TAN or ESRX: this is what a C wave looks like. Sharp and breathtakingly fast drops.

Our SCC has gone parabolic, just like SDS last month. If you own it, resign yourself to the fact that you won't get out at the top. The best way to play it is to count the waves to the top. I don't know what price the top will be at, but I strongly believe it's coming soon: Wednesday, Thursday or Friday. We lost MI today; it had a scratch entry but then again so did AIG.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
AIG	3.57	3.51	-1.7%	3.24	None	Chart
SCC	104.53	135.00	+29.1%	109.99	Start thinking about taking profits	Chart

No charts have good setups; the one I have for you is a crapshoot. Targets are the 50- and 200-day moving averages.

Trade Ideas for 10/08/08

Ticker	Entry	Exit A	Exit C	Chart
WB (Wachovia)	7.06	5.14		Chart

Please refer to "How To Trade The Ideas" (right-hand side) to read this table.