Trade Ideas for 11/10/09

The market ignored today's beautiful setups in the short ETFs and instead powered higher all day. The Dow actually made a new recovery high. Other averages, however, came up short. Whereas the S&P is only 0.1% away from new recovery highs, the Russell 2000 and the XLF, a proxy for the financial sector, are both over 5% away. Of late the Dow has led the S&P, so we could see new recovery highs in the S&P. As for the other averages and sectors, it's wait and see.

Today's strong action stretches the count I came up with over the weekend. While it hasn't been violated yet, the count depends upon an imminent reversal. However, the uneven performances of the various averages and sectors continue to suggest a topping process.

After hours, CEF announced a secondary offering, and prices dropped in response before recovering about half. We may have to exit our position tomorrow at the open at a price less than the sell-stop.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Addl Exit Guideline	Chart
TWM	27.58	28.81	+4.5%	26.99	N/A	Chart
CEF	13.46	14.15	+5.1%	13.93	N/A	Chart
ICO	4.36	4.72	+8.3%	4.36	N/A	Chart
TBT	48.31	47.61	-1.4%	46.99	N/A	Chart

I'm going with long ideas tomorrow but including one short in case the market does give us an imminent reversal.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
XTXI (Crosstex Energy)	5.84	5.49	5.24	Chart
ACAS (American Capital)	3.11	2.89	N/A	Chart
HRZ (Horizon Lines)	5.42	5.15	N/A	Chart
ZSL (Ultrashort Silver)	4.81	4.49	N/A	Chart

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