Trade Ideas for 01/26/10

Today's session featured a weak attempt at a rally. Short-term, the market is in an interesting place. The key question is, is this first leg of the decline nearly done, or is it just getting started? Both scenarios are possibilities:

The green scenario has us going sideways for a few days, then to a slightly lower low before an oversold bounce. The second scenario has us falling quite a bit more before that happens. When in doubt, we go with the trend, but ease up on the risk-taking.

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Addl Exit Guideline	Chart
SRS	7.61	8.04	+5.7%	7.29	N/A	Chart
MZZ	21.11	22.09	+4.6%	20.49	N/A	Chart

Some more short ideas for tomorrow, plus a biotech we've been stalking. The short-term trend is bearish enough that the 50-day moving averages are now flattening out. These ideas may end up being late, especially if the green scenario plays out, so don't risk too much.

New Trade Ideas

Ticker	Entry	Exit A	Exit C	Chart
PSQ (Short QQQQ)	45.26	44.67	N/A	Chart
DXD (Ultrashort Dow 30)	30.79	30.20	N/A	Chart
VXX (VIX ETN)	32.26	30.64	N/A	Chart
DVAX (Dynavax)	1.54	1.41	N/A	Chart

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