Trade Ideas for 05/06/09

No breakdown today, just a solid consolidation of yesterday's big advance. The S&P is now closer to its 200-day moving average overhead than its 50-day below. At this point it could move toward either average, but with today's consolidation above prior resistance, further upside looks like a better bet. Yesterday's Elliott Wave count remains viable, but it's looking increasingly unlikely. Time will tell what kind of agenda this market has.

Addendum: Tomorrow is 120 days from the January 6th high, so I'm going to wait before counting out support for a turn based on the 60-day cycle. Looking back at early January, I recall that sentiment was leaning bullish after a strong bear campaign had seemingly come to an end. It certainly didn't look like that date would mark a significant top, yet it did. History could repeat itself now, but don't count on it.

Monday, January 5th, consolidating a huge push above prior resistance:

Tuesday, January 6th, more consolidation:

Subsequent action:

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
DGP	18.68	18.82	+0.7%	17.96	N/A	Chart
GOLD	45.56	50.00	+9.7%	47.90	N/A	Chart

Some long ideas for tomorrow, but also a short one in case the market does break down.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
NUE (Nucor)	45.01	42.99	N/A	Chart
DIG (Ultra Oil & Gas)	27.67	26.14	N/A	Chart
TMX (Telefonos de Mexico)	17.01	16.57	N/A	Chart
QID (Ultrashort QQQQ)	37.53	35.38	N/A	Chart

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