The market threw a curveball today. After gapping down at the open, it seemed like it would surge a couple times throughout the day, but it never got enough momentum going. I got my hopes up only to see them dashed, and we got a nasty close. It felt worse than it looked; probably because we finished at the day's highs yesterday and at the lows today. However, on the daily chart, we had an inside consolidation day. Not a continuation day, not a reversal day, just basing. The triangles that started forming last week are getting long in the tooth now. Whatever move is going to unfold, I hope it unfolds more quickly than that mid-July to September stretch of nothingness. It ought to; the S&P chart looks much more dynamic now. It really looks something should happen tomorrow or Thursday. I still think the move will be upward, but it could just as easily go the other way.
We sold WB in advance of earnings for a nice gain, which was tempered by an equal-sized loss in poor RIMM, hit by an analyst downgrade yesterday and unable to recover.
| Current Holdings |
| Ticker |
Basis |
Closing
Price |
Perf. |
Sell-Stop |
Additional Exit Guideline |
Chart |
| FORM |
18.46 |
17.51 |
-5.1% |
16.85 |
None |
Chart |
| IPHS |
21.51 |
22.01 |
+2.3% |
21.11 |
Raise sell-stop to 21.38 if price gets above 23.42 |
Chart |
| SVVS |
8.06 |
8.49 |
+5.3% |
7.85 |
None |
Chart |
| SPR |
14.01 |
14.61 |
+4.3% |
12.57 |
None |
Chart |
| HW |
10.66 |
10.34 |
-3.0% |
9.95 |
None |
Chart |
Just like yesterday, the major index ETFs have nice setups for tomorrow. The following ideas are presented as a higher-risk alternative to those ETFs.
Trade Ideas for 10/22/08
| Ticker |
Entry |
Exit A |
Exit C |
Chart |
| DRYS (DryShips) |
25.01 |
22.24 |
21.24 |
Chart |
| ERF (Enerplus Fund) |
27.58 |
25.39 |
23.99 |
Chart |
| CSUN (China Sunergy) |
4.83 |
4.49 |
4.29 |
Chart |
Please refer to "How To Trade The Ideas" (right-hand side) to read this table.
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