Trade Idea for 07/15/09

Bulls continued lifting the market higher today. While the pace of the rise wasn't as torrid compared to yesterday, after hours the market spiked up, pointing to a potential large gap up at tomorrow's open. A pullback is due at some point, and from subsequent action we'll be able to determine whether this is the start of a run to new highs or just typical bear market shenanigans.

We sold ZSL for a small loss today and picked up CFSG.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Additional Exit Guideline	Chart
TQNT	5.29	5.66	+7.0%	4.99	N/A	Chart
CFSG	12.36	12.59	+1.9%	11.84	N/A	Chart
AEIS	10.21	10.85	+6.3%	10.30	N/A	Chart
AHL	23.43	24.07	+2.7%	23.49	N/A	Chart

The market does feel extended here. I don't feel comfortable taking on new longs until a pullback occurs. If the market continues up, our portfolio of long positions should benefit. In case of a reversal, my idea for tomorrow is on the short side.

New Trade Idea

Ticker	Entry	Exit A	Exit C	Chart
SCO (Ultrashort Crude Oil)	23.76	21.78	N/A	Chart

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