Trade Ideas for 10/17/08

Something I've observed is that Wednesdays tend to be quiet days or continuation days, while Thursdays anything can happen. So it was fitting that the reversal should happen today. With today we have completed Waves 1 and 2 off the low, and Wave 3 lies ahead. Thankfully, Waves 3 take longer to develop and don't correct nearly as much as Waves 1. So we can breathe a little more easily now. Don't say I didn't warn you about the craziness of Wave 1! Unless you traded quickly, you didn't make money on it.

I hope some of you took my advice yesterday to make the sell-stops market-on-close. We officially lost JRCC by a penny, so I won't include it in the table. However, I still hold it, and my sell-stop is 14.23. We also bought IPHS today. Let's see how our holdings develop. Tomorrow should be a continuation day, so just hold our stops and focus on the new ideas.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
FORM	18.46	17.38	-5.9%	15.43	None	Chart
RIMM	62.38	59.24	-5.0%	52.49	None	Chart
WB	5.21	6.45	+23.8%	5.59	Consider selling on a close < 6	Chart
IPHS	21.51	22.35	+3.9%	18.52	Consider selling on a close < 19.79	Chart

Time to jump in, either tomorrow or Monday. Friday's setups are on the wide-risk side, but we might not get better setups Monday. It's also time to consider upping the risk percentage (e.g., if you were risking 0.2% per trade before, now go to 0.3-0.4%).

Trade Ideas for 10/17/08

Ticker	Entry	Exit A	Exit C	Chart
SVVS (Savvis)	8.06	6.85	6.77	Chart
CPST (Capstone Turbine)	1.46	1.24	1.19	Chart
BJS (BJ Services)	14.21	11.79	10.87	Chart

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