Trade Ideas for 04/28/09

The S&P gapped down this morning, tested the 855 level a couple of times, then rallied up to close the opening gap. It managed to get very close to Friday's highs before dropping to new lows, testing the 855 level several more times in a choppy basing pattern. For the first time in a few sessions, there wasn't a notable end of the day move.

A breakdown early tomorrow is possible. The S&P has traced out a potential head-and-shoulders top over the past two sessions and is now just above an unfilled gap. The gap support level has been tested multiple times over the past two sessions, and with increasing frequency. Since the more times support is tested, the weaker it becomes, this action favors breakdown. But the bull has shown great resilience, not missing a step since recovering from last Monday's wide-ranging drop.

We bought both the shorts from the ideas list.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
DGP	18.68	19.17	+2.6%	17.96	N/A	Chart
GOLD	45.56	49.15	+7.9%	46.14	N/A	Chart
DXD	55.67	55.34	-0.4%	53.99	N/A	Chart
TWM	53.67	53.46	-0.4%	50.74	N/A	Chart

For tomorrow, more of the same stuff that our portfolio already holds.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
GDX (Gold Miners ETF)	34.87	33.83	N/A	Chart
MZZ (Ultrashort Mid Caps)	46.23	43.68	N/A	Chart

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