Trade Ideas for 11/12/08

Heavy selling on a gap down opened this Veteran's Day, and then a holding pattern as price stayed within a narrow range. In the afternoon an unexpected burst of buying activity got price all the way up to fill the opening gap. Sure, this rally disappeared as quickly as it began, but it makes what should have been a straightforward distribution day harder to read. Was that rally the last gasp of the bulls or a sign of reversal? The potential reverse head-and-shoulders pattern remains viable.

What this means for QID, which we bought today, is a bit of caution. In a bear market, you let your shorts run, and there are more false rallies than there are reversals. Therefore, don't be too quick to sell QID if you bought it. At the same time, realize that it won't be smooth sailing even if it does work out.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
QID	73.47	74.30	+1.1%	66.17	Consider selling on a close < 71.57	Chart

A couple ideas in case the market should catch a bid tomorrow.

Trade Ideas for 11/12/08

Ticker	Entry	Exit A	Exit C	Chart
LNG (Cheniere Energy)	3.36	2.74		Chart
GGB (Gerdau)	6.91	6.06	5.79	Chart

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