Trade Ideas for 12/21/09

Friday the market bounced off Thursday's lows and closed near the highs. Rangebound for so many weeks now, the market is tough to read. Will it drift sideways for another couple weeks to end the year, or will it start trending? With sturdy support just below current prices (the 50-day moving average and the bottom of the range), a breakdown doesn't appear likely in the broad S&P 500. A breakout of the range could last 2-4 weeks and take the markets to new recovery highs. However, on a sector-by-sector basis we had consumer staples (XLP) closing below its 50-day moving average for the first time in many months, joining energy and financials as the laggards of the S&P. If a breakdown does occur, it would likely be led by these sectors. You might have missed it, but the CPST buy stop triggered in the last minutes of trading Friday.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Addl Exit Guideline	Chart
AONE	16.81	19.91	+18.4%	17.34	Consider putting sell-stop for partial shares at 18.59	Chart
VVUS	8.76	9.24	+5.5%	8.76	N/A	Chart
SKF	25.31	24.93	-1.5%	24.58	N/A	Chart
FST	19.61	22.34	+13.9%	20.67	Consider putting sell-stop for partial shares at 21.99	Chart
CBG	12.31	13.05	+6.0%	12.41	N/A	Chart
DEI	13.89	14.15	+1.9%	13.79	N/A	Chart
SBGI	3.81	3.85	+1.0%	3.49	N/A	Chart
SMN	8.96	9.07	+1.2%	8.49	N/A	Chart
CPST	1.30	1.32	+1.5%	1.22	N/A	Chart

Long-biased Monday, but open to the possibility of a move down.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
AMZN (Amazon.com)	130.09	125.64	N/A	Chart
VCI (Valassis)	18.84	17.64	N/A	Chart
URE (Ultra Real Estate)	6.71	6.42	N/A	Chart
AKAM (Akamai)	25.72	24.99	N/A	Chart
ZSL (Ultrashort Silver)	4.71	4.49	N/A	Chart
DUG (Ultrashort Oil & Gas)	13.24	12.83	N/A	Chart

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