Trade Ideas for 10/16/09

The Dow and S&P closed at new recovery highs on strength from the oil sector, but underneath the surface some divergences emerged. Financials, precious metals and real estate lagged noticeably. Also, there's been an interesting disconnect with the earnings results. In the past couple of weeks, the market rallied on results from Alcoa, Intel, and JP Morgan. However, these individual stocks have only fallen since the highs attained in their post-earnings after-hours sessions. Citigroup and Goldman Sachs took hits today after their results came out in the morning, and IBM took a hit with its earnings at the market close. (Google, however is up). So we're seeing that market leadership is not strong at the moment, and neither is sectoral leadership.

We sold DGP at the close, for a profit of 2.4R. Meanwhile, MPG went on a tear, and I have special exit instructions if you hold it.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Addl Exit Guideline	Chart
MPG	2.46	2.96	+20.3%	2.55	Sell on a negative close. On a gap up that opens above 3.25, set sell-stop to 2.95	Chart
SSO	32.68	36.90	+12.9%	34.99	Sell 1/2 on a close < 35.99	Chart

We might be near a turning point, or perhaps we'll see the lagging sectors catch up. Tomorrow is options expiration day, which tends to be slow.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
TC (Thompson Creek Minerals)	13.41	12.94	N/A	Chart
PLD (ProLogis)	12.23	11.74	N/A	Chart
MI (Marshall & Illsey)	8.01	7.69	N/A	Chart
CPST (Capstone Turbine)	1.44	1.32	N/A	Chart
TWM (Ultrashort Russell 2000)	28.12	26.42	N/A	Chart
SDS (Ultrashort S&P 500)	38.31	37.24	N/A	Chart

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