Trade Ideas for February 2, 2010

It looks like the markets are trying to extend yesterday’s rally, which would help out immensely, in moving me closer to finally getting some new positions on the table. I’ve been laying dormant over the past couple of weeks, waiting for the right conditions to present themselves, so that I can start shorting the living daylights out of this market. If we get a few more days of the market rallying, I could finally get my wish. Until then I must practice patience.

Today you have the battle of “who can be the bigger moron?” – with Timmy Geithner testifying before the Senate Finance Committee, and then you have his long lost brother in Paul Volcker speaking before the Senate Banking Committee about his evil plot for destroying the banking industry. Between those two, I have a hard time believing they won’t say something stupid that would send jitters through the financial markets. The best part of it all, is that they start at the same time (10am ET), so who knows what the combined stupidity will bring to the markets (wow – I think I need a cup of coffee!).

Other reports scheduled to come out include the Motor Vehicle Sales, ICSC-Goldman Store Sales at 7:45am ET, Redbook at 8:55am, and Pending Home Sales at 10am.

Currently the futures have the Dow up 26 points, followed by the Nadaq at 5 points and the S&P at 3.5.

Here are Today’s Trade Ideas…

Potential Swing Trade (Long): Hansen Natural Corp (HANS) – After bottoming in July of last year, this stock has made a nice run into the low 40’s and then to pullback nicely to the support level representing the October highs. The stock could be poised for another upward move. Place your stop-loss at 37.89.

Click Here to See the Rest of My Trading Ideas

Potential Swing Trade (Short): Partnerre Ltd (PRE) – This stock has been in a downtrend since mid-October, and despite a minor rally over the past month, on light volume, this stock looks poised to move lower, after failing to put in a higher-high. Place your stop at 75.13 

Bounce Plays: Interoil Corporation (IOC) – After peaking above $82, this stock has dramatically pulled back to the low 60’s, and yesterday put in a nice harami candle pattern, and showing strong potential for a nice bounce off its recent lows. Put your stop in at 58.25.

Pullback Opportunities: United Bankshares Inc (UBSI) – Like most regional banks, these stocks have been on a tear lately, but yesterday’s pullback despite the market rally, and the bearish engulfing candle pattern, may be a clue that the mini-rally may be hitting the skids once and for all. Stop-loss on this one is 25.05.