Great Trades

Great stock trades based on fundamentals and technical analysis.

Friday, March 27, 2009


Added long on dip -- short term

On the market's early weakness today, our trading model added to longs for a short-term bounce near yesterday's lows on the S&P 500. However, we don't intend to hold this trade for long, as the market is very extended and we plan to reverse to short soon.

We'll show this weekend why we expect a more significant pullback soon, but we're buyers of this dip, at least for a day trade. As we mentioned yesterday, "All dips are getting bought up quickly, and month end is coming up," so we expect a bounce from this early weakness, and possibly one more new high.

Open Positions: 40% long S&P 500, long 40% financials1% long SPY April 77 puts, speculative traders long an additional 40% long S&P 500 and 50% financials, and an additional 1% SPY April 77 puts.

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