Trade Ideas for 09/08/09

Monday's a holiday, so next week begins on Tuesday. Friday the market continued bouncing, reaching very overbought levels on declining volume. The close at the highs of S&P 1016 represents a 50% retracement of the 4-day drop from 1039 to 992. A pullback should follow from here. Whether the 4-day drop was the opening salvo of a much larger move down, or merely a correction within a series of higher highs and higher lows, hinges on whether the next pullback breaks below the Wednesday low of 992.

If the S&P were to break those lows, I wouldn't look too closely at the price targets I mentioned in my last post. The count as labeled yesterday no longer looks valid because of the size of the move up. Friday we sold VXX for a profit.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Addl Exit Guideline	Chart
SDS	44.12	43.91	-0.5%	42.99	N/A	Chart
TWM	32.36	32.46	+0.3%	31.32	N/A	Chart
ARIA	2.26	2.35	+4.0%	2.13	N/A	Chart
V	70.44	70.36	-0.1%	69.42	N/A	Chart

A couple of short ideas in case the market drops on Tuesday. A couple long ideas as well, including a gold play with FRG.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
SRS (Ultrashort Real Estate)	13.28	12.28	N/A	Chart
SKF (Ultrashort Financials)	29.92	28.04	N/A	Chart
FRG (Fronteer Development Group)	4.51	4.29	N/A	Chart
POT (Potash)	90.86	88.43	N/A	Chart

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