Trade Ideas for 09/21/09

Friday was the first day in over two weeks that price failed to make a higher intraday high in the major averages. The price pattern is now the opposite of what we saw in March. Compare the price pattern of the S&P during the days leading up to the March rally with the past few days in the inverse S&P fund:

Notice the similarity? In the most bearish case, this suggests that prices will drop dramatically in the coming sessions as a counterpoint to the rally off the March lows. At the same time, the averages may just be consolidating the gains of the past two weeks. Friday was an options expiration day and prices tend to stay in range on such days. We'll find out soon enough.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Addl Exit Guideline	Chart
V	70.44	73.79	+4.8%	73.29	N/A	Chart
SLB	58.43	61.85	+5.9%	60.99	N/A	Chart
WFR	17.58	18.94	+7.7%	18.14	N/A	Chart

For Monday, we're going to go with all the unelected short ideas from Friday. In addition, if price has simply been consolidating, the market could head up sharply Monday. In that case, TNA would trigger. Since it's a 3x leveraged ETF, sell it by the close (or latest Tuesday at the open)

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
FXP (Ultrashort Xinhua 25)	8.96	8.59	8.43	Chart
DXD (Ultrashort Dow 30)	34.92	34.14		Chart
SRS (Ultrashort Real Estate)	9.72	8.89	N/A	Chart
DUG (Ultrashort Oil & Gas)	14.31	13.73	N/A	Chart
TNA (Small Cap Bull 3x)	49.51	46.97	N/A	Chart

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