Trade Ideas for 11/06/09

True to form, price action on the day following the Fed announcement reversed the action of the post-announcement afternoon. The Dow closed above 10,000 on a late surge, and depending on how you look at it, is either forming a rising wedge or building a base from which to spring. As yesterday's count suggested, the move up from Monday's lows extended today:

I don't know whether price is running out of steam or consolidating for a push upward. If the latter, could the market go on to new recovery highs at this point? I can't say that's impossible, but price is up against a 2-year and an 8-month trendline, and price has fallen through the lower trendline of a rising wedge. In that context, the move this past week looks more like the bulls' last stand rather than renewed price strength.



We sold WX today for a profit. If you chose to hold, sell-stop is 13.56.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Addl Exit Guideline	Chart
TWM	27.58	30.10	+9.1%	26.99	N/A	Chart
CEF	13.46	13.96	+3.7%	13.49	N/A	Chart
ICO	4.36	4.50	+3.2%	4.32	N/A	Chart

It may not be time yet to re-enter some of our sold shorts, but let's probe with DUG and EEV. TBT is a play on rising treasury yields.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
DUG (Ultrashort Oil & Gas)	13.31	12.69	N/A	Chart
EEV (Ultrashort Emerging Markets)	13.16	12.47	N/A	Chart
TBT (Ultrashort LT Treasuries)	48.31	47.76	46.99	Chart

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