Trade Ideas for 05/12/09

The S&P gapped down at the open and tried all day to fill the gap but failed to do so. The close was at the lows. With Thursday's and today's sizable down days, the path upward is getting a bit rocky. However, both of these down days were tempered pullbacks, which means a new uptrend high remains a possibility. Nevertheless, for upward momentum (and the parabola) to sustain itself, tomorrow needs to close in the green. If it does, we could see another push, perhaps to the 200-day moving average, to close out options expiration week. If it doesn't, the parabola starts to disappear, and that usually means a swift drop. Tomorrow's action is key.

We bought APL and QID today and were stopped out of TMX.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
DGP	18.68	19.43	+4.0%	19.09	N/A	Chart
GOLD	45.56	57.93	+27.2%	56.32	N/A	Chart
QID	37.92	36.93	-2.7%	34.91	N/A	Chart
APL	5.32	5.40	+1.5%	4.49	N/A	Chart

Depending on which way the market chooses to go, a variety of ideas for tomorrow. Consider waiting until the first hour of trading has passed to elect positions, or risking less on any ideas that get elected in the first hour.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
SRS (Ultrashort Real Estate)	23.01	20.30	19.49	Chart
GG (Goldcorp)	32.64	31.41	N/A	Chart
DXO (Crude Oil Double Long)	3.56	3.37	N/A	Chart
ASIA (AsiaInfo)	18.21	16.99	N/A	Chart

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