Trade Idea for 11/13/09

Just like yesterday, a strong open couldn't sustain strength and the market began pulling back. The Nasdaq-100 made new uptrend highs; not so the other averages. If the market has entered into one of its topping trading ranges, we could chop around for a few sessions before heading on. The fact that this trading range is essentially the same one as the last strongly suggests deterioration of buying pressure. A close below the 1080 level or a break below Monday's low would signal that a leg down has started. Until then, we're probably chopping around with the possibility of new recovery highs to come.

Among our holdings, MS and SII got stopped out and we bought TWM. Today's purchase is designated as the trading position, as opposed to the existing trending position.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Addl Exit Guideline	Chart
TWM (trending)	27.58	29.84	+8.2%	26.99	N/A	Chart
TWM (trading)	29.66	29.84	+0.6%	28.18	N/A	Chart
ICO	4.36	4.46	+2.3%	4.36	N/A	Chart

I wouldn't buy a breakout from here, and I wouldn't short a breakdown unless it broke down quite a bit. Tomorrow's idea is an example of the latter case.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
SKF (Ultrashort Financials)	25.58	23.59	N/A	Chart

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