Trade Ideas for 07/20/09

The Dow and NASDAQ continued their winning streaks, both closing in the green and making higher daily highs. The S&P, however, closed in the red and failed to make a higher high. So mixed messages among the major averages. We don't necessarily need to see a pullback materialize at this point in order to push higher. But it would be unusual not to see one after such a strong week and with July options expiration having just passed. Perhaps a pullback to the 50-day moving average, and then resumption of the fight between the bears and the bulls?

We bought MTL Friday.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Addl Exit Guideline	Chart
CFSG	12.36	13.54	+9.5%	12.99	N/A	Chart
AEIS	10.21	11.39	+11.6%	11.12	N/A	Chart
AHL	23.43	24.70	+5.4%	24.44	N/A	Chart
MTL	9.19	9.50	+3.4%	8.33	N/A	Chart

With markets this extended, risk does appear to be to the downside. But prices may not fall that far even if the next direction is down. Well, you never know. So let's throw the inverse financials ETF into the mix. Gold always has its own agenda, so let's give DGP a shot. And then a long idea in ANAD in case the markets just take off from here.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
ANAD (ANADIGICS)	4.18	3.99	N/A	Chart
DGP (Gold Double Long ETN)	20.28	19.98	19.86	Chart
SKF (Ultrashort Financials)	40.22	38.69	N/A	Chart

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