Trade Idea for 04/03/09

Today was interesting; a huge up day where the bulk of the rise came from the overnight gap. After the wild gap, the market managed to make a new uptrend high. It apparently liked the mark-to-market news quite a bit. But now we are sorely due for at least a minor pullback, if not more, and the sooner the better. If the market keeps soaring, it'll ratchet up the pressure on the eventual correction, increasing its potential severity. The other problem is, very few charts look good for low-risk entries.

We bought SOL today. And I'm keeping CLS in the holdings, because the negative close was only a cent in the last few minutes. If you sold today on the negative close, you did the right thing as technically it should've been sold. But it was a close call.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
MELI	17.39	19.62	+12.8%	17.99	N/A	Chart
CLS	3.24	3.73	+15.1%	3.36	Sell on a negative close	Chart
EGO	9.01	8.95	-0.6%	8.19	Consider selling on a close < 8.49	Chart
VIVO	18.22	17.95	-1.5%	17.32	N/A	Chart
SOL	4.01	3.98	-0.7%	3.59	N/A	Chart

Just one chart for tomorrow.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
HW (Headwaters)	3.86	3.39	N/A	Chart

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