Trade Ideas for 02/06/09

Sorry for that two-day hiatus. Seems like every day this week Dow gets pushed to the brink yet miraculously bounces back. The Dow is made up of some very questionable "leaders of industry" right now, with GE and WMT around 52-week lows, and that's not even to mention C and BAC. Imagine if a year ago (the date of the last rejiggering), the Dow Jones Co. had decided on GOOG or AAPL for the index (rather than BAC), how much more in line with the S&P it would look today. Yes, both of those names are down, but their -33% beats BAC's -88% any day.

Today's bounce back was fueled by speculation that a new bank bailout plan would be unveiled Monday. If the market can rally on this rumor tomorrow, then the bearish cast to the market might be neutralized. Really, the Dow is a mess but there is a sad little uptrending pattern in the S&P that could forestall the inevitable crash.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
DOG	75.51	73.95	-2.1%	70.99	N/A	Chart
TBT	48.11	48.12	+0.0%	45.68	Consider selling on a close < 47.09	Chart

BEAV has held up well on its earnings, so let's give it another spin. Oil and China are also looking perky again.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
CSR (China Security & Surveillance)	5.91	5.49	5.16	Chart
BEAV (BE Aerospace)	10.73	9.81	9.54	Chart
CLR (Continental Resources)	22.51	20.59	19.87	Chart

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