Trade Ideas for 03/30/09

Friday's early pullback never wound up stopping, and we got a sideways consolidation day. It makes sense, given that the market is now trying to break through an area representing a great deal of resistance from earlier this year. The pullback could continue sideways or down, but until we make either a lower high or a lower low, the advantage (at least in the short term) is with the bulls. Note that the basic materials, technology and consumer discretionary sectors have all broken through their February highs, and the financial sector is on the verge of doing so. It seems like only a matter of time before the S&P follows suit.

We got stopped out of four positions Friday (DXO, GGB, URS, UDN) and took on a new one (JNY). UDN opened and stayed below the sell-stop, making it a more expensive loss than planned. TV appears to have had some bad prints; the low of the day as recorded is below the sell-stop, but I was holding it Friday and my sell-stop never tripped, and I didn't see it trade that low either. So we're still keeping it in the list.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
ITU	9.66	11.53	+19.4%	11.18	N/A	Chart
JNY	4.91	4.71	-4.1%	4.19	N/A	Chart
MELI	17.39	18.90	+8.6%	16.86	N/A	Chart
CLS	3.24	3.73	+15.1%	3.34	Consider selling on a close < 3.61	Chart
EGO	9.01	9.15	+1.5%	8.19	N/A	Chart
ADBE	22.71	21.84	-3.8%	21.49	N/A	Chart
TV	14.12	13.91	-1.5%	13.71	N/A	Chart

The pullback could continue Monday, or the market may have decided that it has done enough digestion of prices and start heading higher. If it does start to rally, it could be a rally with some oomph behind it (being Wave 3 and all), and the first five ideas might do very well. On the other hand, we could get a sharp pullback. If that's the case, consider giving TZA a shot, perhaps to hedge your long positions. TZA is another one of the Direxion 3x ETFs, which I don't recommend holding overnight. Therefore, if it's elected, it will not be in Monday's list of holdings no matter how well it does; the idea is to sell it by the market's close.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
ACM (Aecom)	27.22	25.99	N/A	Chart
FCS (Fairchild Semiconductor)	4.16	3.88	3.73	Chart
JBHT (JB Hunt)	25.71	24.45	N/A	Chart
LVS (Las Vegas Sands)	3.33	2.79	N/A	Chart
VIVO (Meridian Bioscience)	18.22	17.49	16.49	Chart
TZA (3x Small Cap Bear ETF)	49.78	45.43	n/a	Chart

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