Trade Ideas for 10/15/08

As has been the case so often of late, they faded the open, and unlike yesterday they made it stick. But I have been waiting for a pullback to provide a low-risk, high-reward entry. As a consequence, many charts have started to set up nicely. It's time to raise the amount risked per trade, and to consider using the more aggressive exit price. The turn took place, we've gotten a pullback, and the next move up will be Wave 3 off the lows. Waves 3 tend to move the farthest of the impulse waves. As such, they must be caught and ridden. There'll probably be some more pullback, but as we saw today that might just be a gap down that's faded.

Most of our holdings were taken down below their entry prices. They still look good to me though. We bought FORM today, and it followed the market up and then back down.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
JRCC	18.93	18.95	+0.1%	14.89	Consider selling on a close < 18.34	Chart
RIMM	62.38	60.12	-3.6%	50.21	Consider selling on a close < 59.96	Chart
WFR	24.83	24.20	-2.5%	19.99	Consider selling on a close < 22.28	Chart
WB	5.21	6.31	+21.1%	4.29	Consider selling on a close < 5.25	Chart
FORM	18.46	17.38	-5.6%	15.26	Consider selling on a close < 17.26	Chart

For tomorrow, some charts I'm actually excited about. Whenever the pullback phase ends, these charts look to benefit the most. They are already champing at the bit.

Trade Ideas for 10/15/08

Ticker	Entry	Exit A	Exit C	Chart
RMG (RickMetrics)	17.93	16.49	15.99	Chart
LINE (Linn Energy)	14.51	12.89	12.16	Chart
CAF (Morgan Stanley China Fund)	26.41	24.24	22.74	Chart

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