Trade Ideas for 03/10/09

Mixed messages after today's action. We could be headed for another leg down (this is the more likely scenario), or perhaps today was spent correcting Friday's late-day rise, paving the way for upside tomorrow. Further downside is more likely primarily because the major trend is down, but also because the Nasdaq made new lows today. Surprising resilience from the financial sector kept the other major averages above their Friday lows.

Oil also performed well today; as a consequence we bought DXO but also got stopped out of DUG. We also bought PM, which had a decent breakout.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
SWKS	6.61	6.95	+5.1%	6.62	N/A	Chart
PM	33.73	34.07	+1.0%	32.49	N/A	Chart
QID	67.74	70.81	+4.5%	65.32	N/A	Chart
DXO	2.51	2.49	-0.8%	1.91	Consider selling on a close < 2.22	Chart

In case we get another leg down, DXD should trigger. On the other hand, the strength in financials today is worth noting. ITU is a Brazilian bank with a nice setup, but if you're feeling lucky, UYG is a low-probability setup with high profit potential. I wouldn't risk a lot on the latter.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
DXD (Ultrashort DJIA)	90.87	84.49	N/A	Chart
ITU (Banco Itau)	9.66	9.11	N/A	Chart
UYG (Ultra Financials)	1.63	1.40	N/A	Chart

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