Trade Ideas for 05/28/09

Buyers couldn't push the market that much higher today, and then prices started collapsing. The dollar has peeked its head above a basing pattern and may be ready to bounce after a precipitous drop. Lately the dollar has been inversely correlated with the general market and with gold, and sure enough, both of these fell today.

The most ominous development for the market has been the pace of the rise in long-term bond yields. Rising interest rates is bad enough for the market, but since last Thursday this rise has been parabolic. Against this backdrop the market has held up well, but I get the feeling that any upside above S&P 930 will be Pyrrhic and short-lived. This is not to say it won't happen; the market can still break either way from here.

As for yesterday's ideas, AMTD had an outside reversal day and was sold after it was elected.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
DGP	18.68	20.93	+12.0%	20.26	Consider selling a portion on a breach of 20.62	Chart
SSO	25.06	24.75	-1.2%	23.99	N/A	Chart
ASIA	20.68	20.78	+0.5%	18.79	N/A	Chart
TWM	50.67	46.93	-7.4%	44.74	N/A	Chart
SMN	20.43	19.50	-4.6%	17.99	N/A	Chart

A hodgepodge of ideas for tomorrow.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
UUP (US Dollar Bullish Fund)	24.12	23.92	N/A	Chart
JACK (Jack in the Box)	27.59	26.32	N/A	Chart
SKF (Ultrashort Financials)	47.21	42.12	N/A	Chart

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