Trade Ideas for 09/23/09

The high from last Thursday continues to hold at least in the Dow and S&P. However, we seem to be going through another consolidation period after a big run up. This has happened several times in the recent past, and the majority of the time the consolidation concluded with an intraday spike higher that couldn't sustain itself.

A couple of exceptions: late July, the brief consolidation period led to a solid advance, and early August the spike higher led to a few more days of consolidation before the drop. Based on recent price performance, the expectation is higher prices based on the recent examples of this pattern. However, there's a chance it'll be a one-day intraday high followed by a selloff.

We bought EL today.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Addl Exit Guideline	Chart
FXP	8.96	8.84	-1.3%	8.43	N/A	Chart
DXD	34.92	34.38	-1.5%	34.14	N/A	Chart
DUG	14.31	13.80	-3.6%	13.73	N/A	Chart
WFR	17.58	19.03	+8.2%	18.14	N/A	Chart
EL	37.18	37.32	+0.4%	36.23	N/A	Chart

Some speculative longs and a couple of shorts for tomorrow. FXP is not intended as a re-up; only elect it if you don't own any. Tomorrow the Fed makes its announcement at 2:15 PM ET. (Not Tuesday—my bad on that one.)

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
VG (Vonage)	1.58	1.43	1.35	Chart
JAZZ (Jazz Pharmaceuticals)	10.01	9.29	9.09	Chart
FXP (Ultrashort Xinhua 25)	9.18	8.77	8.43	Chart
SRS (Ultrashort Real Estate)	9.57	8.75	8.45	Chart

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