Trade Idea for 07/24/09

After moving over the prior highs early in the session, the market really took off. There was a reason I made that very observation yesterday, and it had to do with the choppiness of the sessions on Tuesday and Wednesday. The charts suggested to me that Wave 4 had completed, and perhaps Wave 5 had as well. This was the picture as of yesterday's close:

The question mark marked the spot. Either all of Wave 5 was done, or just 1 of 5. Sure enough, it was the latter, and today we rode Wave 3 of 5 up, up and away. Only now we're facing a similar set of circumstances as yesterday's close. Wave 3 of 5 certainly looks like it's done, but it's also possible we got a truncated 5th and the entire up move is now done. Like yesterday, it depends on whether we can get above today's high. Even if we can, the juiciest part of the rally looks to be over (but this market could surprise with a blow-off 5th of 5th as well).

We bought SLV and TSL today.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Addl Exit Guideline	Chart
CFSG	12.36	14.88	+20.4%	14.49	N/A	Chart
AHL	23.43	25.93	+10.7%	24.96	N/A	Chart
MTL	9.19	10.22	+11.2%	9.37	N/A	Chart
SLV	13.56	13.52	-0.3%	13.20	N/A	Chart
TSL	29.51	30.21	+2.4%	27.83	N/A	Chart

Not a lot for tomorrow, and if you bought SLV today you might want to hold off.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
PAAS (Pan American Silver)	20.31	18.99	N/A	Chart

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