Trade Ideas for 04/22/09

After yesterday's big drop, the market recovered a huge 50% (just shy of 20 points with respect to yesterday's lows) and once again looks vulnerable, overbought at resistance. At this point, the market is acting in character, even with the swift recovery of half of yesterday's losses. However, should the market continue to rise tomorrow (aside from action in the first hour or so), then it would be necessary to re-evaluate the wave count.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
SRS	29.63	27.25	-8.0%	25.74	N/A	Chart

Again we had a wide-range day, which doesn't provide great setups. I found a couple that are OK. One thing to consider is buying some of tomorrow's ideas at the market open, risking to the conservative exit ("Exit C"). This is a riskier trade because it's a buy in anticipation of the breakdown, and it's possible my wave count is wrong and there won't be a breakdown. So please adjust your amount risked accordingly.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
QID (Ultrashort Nasdaq-100)	42.66	40.81	39.20	Chart
SDS (Ultrashort S&P)	71.58	67.49	64.15	Chart

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