Trade Idea for 02/18/09

Nasty gaps down and a close at the lows made this quite the dire Tuesday to start off the week. Today was critical, and the inability of the buyers to make a dent in the market means that the direction for this next move is likely to be lower. I don't know how long this move will take, but the target appears to be a new low for the Dow and S&P, even if it turns out to be marginally lower. At this point, the Nasdaq appears strong enough to stay above its own 52-week lows.

We were stopped out of BEAV and CSR, but we were among the lucky ones in that these did not gap down, allowing us a chance to get out at our stops. For those who have held DOG patiently, your patience is finally paying off, as it gapped high and closed at the day's highs. EFU gapped far too much for it to be included among the current holdings.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
DOG	75.51	78.20	+3.6%	74.22	N/A	Chart
PAAS	17.68	17.42	-1.5%	16.95	N/A	Chart

More downside ahead, most likely.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
RWM (Short Russell 2000)	73.94	72.69	69.43	Chart

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