Trade Idea for 12/02/2008

Sellers took control early and haven't yet let go. While the markets were due for a pullback, the magnitude of today's selling jeopardizes the bullish read. It would've been a lot better had last Tuesday's lows held; now new lows may be next. Most of our positions were sold, a couple for some nice gains, although the gap down in gold didn't help our return in GLD. I only hope my suggestion to take profits Friday didn't fall on deaf ears.

It's too early to tell what type of move is going to play out. We could get a fast recovery tomorrow, or a drift downward into Thursday, or a resumption of the furious pace of selling down to the old lows or even beyond. For now, I'm adopting a neutral position: play out the holdings we still own, and avoid taking new ones.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
LNG	2.94	2.76	-6.1%	2.64	None	Chart
AN	7.01	8.55	+22.0%	7.97	None	Chart
AMZN	43.46	40.47	-6.9%	39.59	None	Chart

AN has bucked the downward trend and may even be establishing a base on its 50-day moving average. Wait until after the first 45 minutes of trading if you wish to add.

Trade Idea for 12/02/08

Ticker	Entry	Exit A	Exit C	Chart
AN (AutoNation)	8.68	7.97	N/A	Chart

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