Trade Ideas for 03/02/09

The slide continues... Sometimes in this bear market we get a high-volume flush and then a rally. Friday's drop looked high-volume; Dow and S&P volume surged above normal levels. But Citi accounted for most of this surge; by contrast, DIA and SPY did not exhibit extraordinary volume. (As you may know, Citi was quasi-nationalized Friday.) I wouldn't read Friday's action as a sign that a reversal's nigh. Instead, stick with the trend.

We sold DXO Friday for a nice gain and bought DUG.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
DUG	30.01	30.50	+1.6%	28.49	N/A	Chart
RWM	80.01	80.73	+0.9%	78.89	N/A	Chart
CYBS	12.48	12.32	-1.4%	11.45	N/A	Chart
VMI	45.21	43.56	-3.6%	41.34	N/A	Chart

The downtrend looks like it will continue, but even in a downtrend some stocks look OK. ASIA might be worth a shot. Otherwise, let's stick with short ideas.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
ASIA (AsiaInfo)	12.61	11.79	N/A	Chart
SMN (Ultrashort Basic Materials)	51.16	46.59	N/A	Chart
SRS (Ultrashort Real Estate)	83.51	75.78	N/A	Chart

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