Trade Ideas for 06/26/09

A very weird session the past day. Overnight S&P futures rocketed to 3-day highs, then fell back to such an extent that the S&P opened near the prior close. Whereupon the market shot back up to the overnight highs and surpassed them, closing near the high of the day.

A rally of today's magnitude so soon after the largest decline in three months (-70 S&P points from June 11-23) does not mean the downtrend is over. A head-and-shoulders top, for example, features those very characteristics. However, it does put the bears on notice. Should this rally continue for another 10 points or so, the pattern shifts in favor of the bulls.

We were stopped out of DUG and QID today, the former for a nice gain.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Add'l Exit Guideline	Chart
SCC	61.84	63.07	+2.0%	62.62	N/A	Chart
SRS	21.51	20.45	-4.9%	20.12	N/A	Chart

Some long picks for tomorrow to balance out the bearish bias.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
RBY (Rubicon Minerals)	3.29	3.11	2.89	Chart
DGP (Gold Double Long)	20.26	19.95	19.64	Chart
BRCD (Brocade)	8.02	7.49	N/A	Chart
SKF (Ultrashort Financials)	46.62	42.58	N/A	Chart

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