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Saturday, December 26, 2009

Trade Ideas for 12/28/09

Narrow range on Christmas Eve, but the range sat above that of the prior day's. The market looks ready to lift off for another 1-2 week run, maybe to include some wide-ranging up days. The end of the year holidays tend to paint tricky chart patterns, so if the strength continues we'll want to book profits on the 31st. We bought FMC and were stopped out of ZSL and BVF for losses. In addition, we took partial profits on existing positions.

Current Holdings
Ticker Basis Closing
Price
Perf. Sell-Stop Addl Exit Guideline Chart
AONE 16.81 21.07 +25.3% 19.19 N/A Chart
VVUS 8.76 9.93 +13.4% 8.99 N/A Chart
FMC 57.01 56.93 -0.1% 56.19 N/A Chart
FST 19.61 23.52 +19.9% 22.65 N/A Chart
CBG 12.31 13.90 +12.9% 13.47 N/A Chart
DEI 13.89 14.85 +6.9% 14.72 N/A Chart
SBGI 3.81 4.16 +9.2% 3.92 N/A Chart
VCI 18.84 18.89 +0.3% 18.26 N/A Chart
CPST 1.30 1.25 -3.8% 1.22 N/A Chart
URE 6.71 7.28 +8.5% 7.15 N/A Chart
GOLD 80.64 81.48 +1.0% 79.27 N/A Chart
VMW 43.01 43.77 +1.8% 42.10 N/A Chart


New Trade Ideas
Ticker Entry Exit A Exit C Chart
DDR (Developers Diversified Re) 9.34 9.09 N/A Chart
ASH (Ashland) 40.26 39.19 N/A Chart
IVAN (Ivanhoe Energy) 2.74 2.66 N/A Chart
SOLF (Solarfun) 7.71 7.49 N/A Chart

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

3 comments:

Anonymous said...

You haven't mentioned Elliott Wave for a while. Is it no longer effective in this environment?

Jim said...

Happy Holidays!!

Thanks for continuous blogging over the year.

Do you have any plans for a post looking the year ahead.

Thanks,
Jim

Chris said...

Thanks for the comments guys!

Anon, EW is always effective -- if used properly! The long term count remains very bearish as this rally continues to unfold as an a-b-c correction up. However, my system is short-term oriented, and I've found that the long-term EW is counterproductive as we remain in a medium- and short- term bull. Short-term, lots of ambiguity but the markets do appear to be readying for an impulsive wave up. Failure to do so would at this point probably means the rally has ended.

Jim, thanks! No plans for a forward-looking post but 2010 promises to be one of the most significant years in our lifetimes. When the bear rally ends, what follows won't be pretty. Let's try to take advantage of this end-of-year surge for the time being.