Trade Idea for 10/24/08

An up-and-down day that closed with a rather powerful rally. While the lows held in the Dow, the S&P breached its 10/16 lows. We nearly bought SH by a couple of pennies. In fact it was the lower low around 2pm that touched off the late-day rally, so a good thing SH didn't get elected yet! We'll buy it if it breaks through Friday though.

The overall action is questionable, and right now the system is all cash as the market struggles for direction. If the markets head south, I think it could fall a fair amount—although not as much as earlier this month. If the market rallies from here, I just don't see much evidence of bullish strength. I'd feel better if it set up for a couple days. Either way, the idea that a powerful rally could take place seems far off now.

Trade Idea for 10/24/08

Ticker	Entry	Exit A	Exit C	Chart
SH (UltraShort S&P 500 ETF)	94.91	88.22	82.99	Chart

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