Trade Ideas for 03/26/09

Today the market tried to fool us with the nastiest trick in the book: the slightly higher double top. After zooming to a new, slightly higher high early on (and triggering nearly all of yesterday's buy stops in the process), the market pulled back, tried again, got to another incrementally higher high, ran out of steam and then collapsed. But all the clues were there: no continuation of yesterday's pullback, no true digestion of gains before this morning's higher high, just zoom-zoom from the get-go. It all happened too quickly. The below is a 4-day chart; x-axis shows Pacific time.

The good news is, now the market really looks ripe for some serious gains in the next few sessions. The low put in today was a solid 61.8% retrace of the advance from late last week. Ideally we pull back a little bit in the morning, just so the market digests the gains (i.e., gets used to the price level it's at), thus paving the way for a further advance. This run is in the early stages, and it could last until the first or second week of April.

Our portfolio took a hit from the day's whipsaw when we bought and sold SSO. We also sold RIMM, but eked out a small gain over the holding period. We bought URS, EGO, UDN, and CLS.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
ITU	9.66	11.58	+19.9%	11.18	N/A	Chart
DXO	2.51	3.06	+21.9%	2.99	N/A	Chart
GGB	5.29	5.70	+7.8%	5.49	N/A	Chart
MELI	17.39	18.95	+8.9%	16.86	N/A	Chart
URS	41.46	40.67	-1.9%	38.86	N/A	Chart
CLS	3.24	3.50	+8.0%	3.15	N/A	Chart
EGO	9.01	9.26	+2.8%	8.19	N/A	Chart
UDN	25.79	25.70	-0.3%	25.49	N/A	Chart

Another day, another larger than normal roster of ideas. Truthfully, most stocks are now buys, if we are where I think we are in the cycle. If that is indeed where we are, these buys will turn into sells in 1-2 weeks.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
JNY (Jones Apparel)	4.91	4.19	N/A	Chart
UNG (Natural Gas ETF)	18.06	17.47	17.32	Chart
MI (Marshall & Illsey)	6.27	5.49	N/A	Chart
ADBE (Adobe)	22.71	21.49	N/A	Chart
JRCC (James River Coal)	14.92	12.99	N/A	Chart
TV (Grupo Televisa)	14.12	13.27	N/A	Chart

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