Trade Ideas for 04/07/09

Today's action extended the consolidation to three days, and many, many charts are now set up very nicely for a breakout (should one occur). We did dip a little further into the gap I mentioned in the last post, but rallied solidly off of it. The channel in which the market has been trading should break soon, and while odds favor upside, one can't rule out a break to the downside. The advantage of buying the breakout, rather than in anticipation of the breakout, means the latter case won't cause us to take on new positions.

Sadly, we were stopped out of SOL today by a couple of pennies.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
MELI	17.39	19.59	+12.7%	17.99	N/A	Chart
CLS	3.24	4.35	+34.3%	3.71	Consider selling on a close < 4.05	Chart

The great thing about lengthier consolidations is that a breakout above the consolidation zone has more potential for continuing higher. I think now is as good a time as any to risk a bit more than usual.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
UNM (Unum Group)	13.96	13.11	N/A	Chart
UWM (Ultra Russell 2000)	15.89	14.79	N/A	Chart
ACI (Arch Coal)	15.06	13.99	N/A	Chart
PLD (ProLogis)	8.41	7.42	6.84	Chart
ACM (Aecom)	28.67	27.16	N/A	Chart

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