Just when it looked like things might turn out for the better, further financial weakness laid low the market. On the charts of the major indices, we had a significant breakdown today, and further downside is favored. Overall the action resembles that of last summer, when prices inched higher over the course of a couple months, only to plunge to new depths in a matter of weeks. Still, news can move this market either way, so it pays to remain cautious. Today we sold MR and bought SH. Meanwhile BEAV is hanging on by a thread.
| Current Holdings |
| Ticker |
Basis |
Closing
Price |
Perf. |
Sell-Stop |
Additional Exit Guideline |
Chart |
| BEAV |
9.07 |
8.15 |
-10.1% |
7.99 |
N/A |
Chart |
| SH |
79.23 |
80.29 |
+1.3% |
75.32 |
N/A |
Chart |
While it sure seems like the crash will continue, this market has pulled some sharp reversals in the recent past. With that in mind, the ideas for tomorrow include a short and a long.
Trade Ideas for 01/21/09
| Ticker |
Entry |
Exit A |
Exit C |
Chart |
| DUG (Ultrashort Oil & Gas |
28.39 |
25.19 |
24.66 |
Chart |
| AER (AerCap) |
6.21 |
5.33 |
N/A |
Chart |
Please refer to "How To Trade The Ideas" (right-hand side) to read this table.
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