Sectors Up:

• Steel (SLX) : 34.78 +2.19 (6.72%)
• Broker/Dealer (XBD) : 84.17 +4.15 (5.19%)
• REIT (IYR) : 37.26 +1.76 (4.96%)
• Semis (SMH) : 19.16 +0.88 (4.81%)
• Oil Services (OIH) : 86.71 +3.98 (4.81%)

Sectors Down:

• Biotechs (IBB) : 71.08 -1.55 (2.13%)
• Healthcare (XLV) : 26.52 -0.44 (1.63%)
• Natural Gas (UNG) : 24.83 -0.40 (1.59%)
• Consumer Staples (XLP) : 23.95 -0.36 (1.48%)
• Utilities (XLU) : 29.70 -0.43 (1.43%)

Longs: (ACM), (AFAM), (AGNC), (APOL), (AMGN), (AWK), (CBST), (CEPH), (COGT), (CWT), (DV), (EBS), (ESI), (GMCR), (GVA), (HTS), (LHCG), (LPHI), (PETS), (WFC)

Shorts: (AAPL), (ABT), (ACI), (ADP), (AFL), (AG), (AGU), (AMZN), (ANF), (APOL), (BA), (BAC), (BBY), (BIDU), (BNI), (BRCM), (BUCY), (CBI), (CCL), (CF), (CHL), (CLF), (CMG), (CMI), (CNQ), (CNX), (COF), (COH), (CSX), (CTSH), (DE), (DRYS), (DVN), (ENER), (EOG), (ERTS), (ESRX), (EXM), (FSLR), (FWLT), (GE), (GNK), (GOOG), (GS), (HES), (HIG), (INFY), (ISRG), (JCP), (JOYG), (JRCC), (KSU), (LDK), (LVS), (MA), (MET), (MS), (MOS), (MTL), (NSC), (PCLN), (POT), (PRU), (SHLD), (SOHU), (SPG), (SPWRA), (STP), (TIF), (UNH), (WFT), (WLT), (WYNN), (X)

This is by no means an exhaustive list of long and short ideas. We will have more charts as we move forward through the first ‘active’ trading week of 2009.

• APOL (Apollo Group): Short 1000 shares @ 68.06. Down -8,840. Intend to hold for next 4-8 weeks.
• FLR (Fluor Corp): Long 500 shares @ 52.36. Down -4,105. ‘Cheater Long’ position to play the bounce.
• GS (Goldman Sachs): 100 Jan 50 puts @ 5.00. Down -46,000. Painful loss to recover…
• ICE (Intercontinental Exchange): Short 500 shares @ 71.01. Down -2,805. Will hold for sometime.
• PCLN (Priceline): Short 500 shares @ 65.77. Down -1,340. Still holding well.
• RIMM (Research In Motion): 50 Jan 40 puts @ 6.00. Down -19,025. Another painful position…
• RL (Polo Ralph Lauren): Short 1000 shares @ 39.71. Down -3,840.

As far as the general market direction is concerned, I don’t have a good feeling about this market. I think we might test the lows and eventually break down to the new lows. But at this point looking at the charts of Dow, S&P 500 and Nasdaq, it looks like the market is at a juncture where it is unable to decide which way to head. This will be more clear when the big money crowd returns back from holiday season sometime this week or next.

About the portfolio being in deep red, I’m really little concerned about it at all except for GS and RIMM positions. For now, we have to digest the loss on GS and maybe RIMM but I’m pretty confident that GS will eventually help us make that money back when the time is right. The liquidating value of the portfolio is still well over the general market returns and is currently $121,172.50 (+21.17%) but well below its highest levels. I will be updating the portfolio page in few days to reflect the current holdings.

Don’t forget to checkout our new watchlist for 2009 with more long and short ideas. We will be in full swing in 2009…HAPPY NEW YEAR TO ALL!

Happy Holidays!

I will have a quick run-down of my portfolio holdings by today or tomorrow which is down from its highs but still GREEN. . Hopefully, 2009 will bring more prosperity to everyone. Cheers!

Cheers!

A quick note to all the readers of STI. I just glanced at the charts of all the major indices and noted that volume has been drying up for last couple of days. Watch out for any year-end rally. I’m looking to go long as long as the rally doesn’t fade away. I already gave the names like (FLR) and (JEC) which might rally coz of Obama’s initiatives on “re-building America’s infrastructure”. These stocks might jump 10-40% if we continue with year-end rally.

As far as (GS) is concerned, selling pressure (volume) is drying up so watch for any trend reversal to the upside. I have to admit that this was a sucker trade on my part. I don’t think this one has more legs to go down for now. Will be watching closely to exit or hold this position. I’m still going to stick to my below $25 target sometime next year.

Trade Update: I closed (APOL) Jan puts for a good loss in the smaller portfolio but still short with shares in the larger portfolio. Smaller portfolio is now 100% cash while larger portfolio has (GS) Jan puts, (APOL) shorts, (ICE) shorts, (PCLN) shorts, (RIMM) Jan puts, (RL) shorts.

I ran a couple of scans on Monday for a brief moment and found some good setups for long ideas. Please bear in mind that these stocks are rallying in downtrend. You can play these names for a possible bounce towards major resistance areas.

Fluor (FLR) and Jacobs Eng. (JEC) are two such names that broke out of basing pattern on huge volumes. There is a good potential that these stocks might rally to their 200 DMA. (FLR) formed a double-bottom and consolidated between 40-45 for a week or so and broke out today on above average volume. (JEC) is forming a similar pattern and can bounce 20-30 points if the general market rally continues. Unfortunately due to slow internet connection, I can’t post charts.

Once I close my short trades, I will see if I can allocate some funds to the long side as long as the market is rallying in this bear phase.

I have been getting lots of questions/comments about Dow 6000 and the market direction for short-term. I’m not watching the market so closely to call the direction but I think we might be setting up for a playable bounce. But in any case I wouldn’t write-off about Dow going to 6000. I may be little off in my timings due to my constant touch with the market.

As far as my trades/open positions are concerned, I might close some or all of my options trades and keep the shorts a little longer provided they don’t go in deep red. My large portfolio is showing some losses but still up in this “insane” market. I will definitely look to close (APOL) puts during next week for a good loss if it doesn’t start acting in my direction. There is too much chatter about which way (GS) is headed. In my opinion, (GS) will be below $25 sooner or later by the time its all over. The thing I don’t know is “WHEN”. This is just my humble opinion and you know what they say about “opinions”. Opinions are like a-holes, everyone has one. I might close (GS) puts and start with straight shorts depending on what I see in the coming days.

I’m missing the market action but loving every moment of this trip. Protect your interest in this market. The market was there, is there and will always be there but once you loose your capital its gone. You’re out of the game.

For those of you who missed my late day call on (RIMM) yesterday, I have another interesting short for your palate and is none other than Apple (AAPL). It bounced off its lows during the wedging rally (Thanksgiving Week) towards potential resistance near 20 DMA. Now it is pulling back from that point and looks a good example to set the tone for short-sale. I suggest that you can short (AAPL) around 90-92 (current) levels with stop above 95-98. This might test the lows below 80 or even go lower. I’m fully tapped out on my shorts so can’t initiate this one for now but incase if I can close out any trade, (AAPL) short would be my next short.

Heads-up guys, (RIMM) is breaking multi-year support around 39.80. If you haven’t shorted it yet, you can do so on any bounce or a hard break below 39.50. Keep your emotions in check as we might (”might”) test below 6000 on Dow and re-test (maybe break prior lows) prior lows on S&P 500 and Nasdaq before the New Year.