Trade Ideas for 04/23/09

The S&P ended yesterday at resistance (850), and after a gap down open, cleared that resistance and managed to stay above it for almost the entire day. The players really pushed the market to the brink, perhaps in an effort to squeeze out the bears and suck in some retail investors. The action after the first hour was very poor: not much momentum and new highs that were barely above prior highs. In fact, the entire upward run of the past two days was a fractal of the run from March 6th through last Friday: strong start, exhaustion finish.

It all came crashing down in the last hour. If you ever need convincing that the market is fiendish and definitely not on your side, today was a perfect capsule of the lengths major players will go to in order to wrong-foot smaller players like us.

At this point, the market looks like it's about to break down. Fortunately we did not get stopped out of our short position.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
SRS	29.63	29.05	-2.0%	26.13	N/A	Chart

A couple more shorts for tomorrow. FAZ is a Direxion 3x fund, which I have been advising not to hold overnight. For tomorrow only, if FAZ is elected and closes near its highs tomorrow, then consider holding overnight and selling Friday morning. Also, gold may have completed its correction, so let's give it a shot here.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
FAZ (Financial Bear 3x)	10.11	8.57	8.49	Chart
SDS (Ultrashort S&P)	69.26	65.63	N/A	Chart
DGP (Gold Double Long ETN)	18.68	17.81	17.36	Chart
GOLD (Randgold)	45.56	43.16	42.38	Chart

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