Good morning everyone, it looks like the market woke up on the wrong side of the bed this morning as futures are pointing down. Currently you have the Dow at 47 points down, the Nasdaq 9 points down and the S&P at 6.5 points down. A big chunk of this decline has to do with the earnings report out of J.P. Morgan Chase (JPM) this morning.

There’s quite a few reports coming out here shortly with the Consumer Price Index and Empire State Manufacturing Survery at 8:30am ET, followed by Industrial Production at 9:15am and Consumer Sentiment at 9:55.

On my current portfolio, I will be raising my stop-loss in LXK to 24.94 and DDM I will raise it to 43.88.

Here are Today’s Trading Ideas…


Potential Swing Trade (Long): Petroleum Development Corp (PETD) – This past week, it has pulled back nicely to a minor support level. Current price level looks attractive, with upside potential in to the low-20’s. I would place a stop at 17.49. Initial resistance is around 20. However, the market is overbought and I would strongly take that into consideration before intiating any long position.

Potential Swing Trade (Short): Wal-Mart Stores (WMT) – Right below a previous top that is acting as major resistance for the stock, WMT offers a handsome risk-to-reward setup to the short-side. I’d place my stop at 55.41 and look for some initial profit taking at 52.90 with an ultimate target of 50.00. The biggest obstacle for this stock will be the long-term market rally and breaking the support level at 52.30.  

Stock Ready to Bounce: Cray Incorporated (CRAY) – Heavy volume has pushed this holding down hard over the past week, and could be ready for typical dead-cat bounce. Two very nice candles at the bottom form a doji-tweezer pattern, which can constitute a short-term bottom in a decline. I would place my stop at around 5.50

Stock Ready to Pullback: Illumina Inc (ILMN) – If you like volatility than this one is for you as this stock has shot up about 50% in the last month. However, yesterday’s action makes it appear as if the show is over, especially with the PERFECT gap fill from 10/27/09. No way to know though unless you play, and if you manage to get into ILMN I’d place my stop just above $41 (the rally’s high).