Trade Ideas for 11/21/08

I hope this post finds all of you hanging in there, surviving if not thriving in this onslaught of wealth destruction. Unfortunately, selling begets selling (just as buying begets buying), and there's no telling how much selling is left. Perversely, as the number of people expecting a bottom decreases, the likelihood of a low being put in increases. Cold comfort if you're long this market, but it's another of saying that between here and absolute zero, there will be kickback rallies.

Today the Dow finally broke through the October 10th lows, joining the rest of the market. The major indices are all very oversold, and while risk is now to the downside as a result of the breakdown, there's no easy setup for going short because of the oversold condition. Our only holding is gold, which held up well today.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
GLD	74.27	73.45	-1.1%	68.79	Consider selling on a close < 72	Chart

For those who didn't get in the first time, a re-up on gold, and LNG still holding strong above a flat 50-day moving average despite oil's collapse.

Trade Ideas for 11/21/08

Ticker	Entry	Exit A	Exit C	Chart
GLD (StreetTracks Gold)	75.21	72.42	68.79	Chart
LNG (Cheniere Energy)	2.94	2.49		Chart

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