Trade Ideas for February 22, 2010

The markets are once again at it to extend the bullish feelings that have been prevalent in the market for the past two weeks. Interesting though, the Asian markets are “guns-a-blazin’ this morning rallying over 2.5%, yet its effect has been little to nothing on the US Futures indices.

Being short this market has not been all that fun for me over the past two weeks, I could use a break – throw me a bone – give me a day that is just barely in the red. I’d be happy with that at this point. I guess we’ll see how this week goes; it’ll be interesting to see if Monday continues its propensity to rally on the first trading day of the week (check it out on the charts it is quite interesting).

Not much today in the way of economic reports, but we do have our buddy Ben Bernanke speaking at 11am ET, which will be closely watched by the markets considering that he raised the discount rate by a quarter percent.

Currently the futures are showing a little bit of strength with the Dow up 22 points followed by 7.5 points on the Nasdaq and 2 points on the S&P.

Here are Today’s Trading Ideas…

Potential Swing Trade (Long): Intermune (ITMN) – a volatile stock no doubt, this stock has managed to make a run of over 100% since late November. Since reaching its highs earlier this month, it has pulled back and consolidated nicely to its previous high, which is working nicely as a support line for the stock. Place your stop at 14.28.

Click here to See the Rest of My Trading Ideas.

Potential Swing Trade (Short): Temple Inland (TIN) – Rolled-over nicely to start the year. Broke critical support levels and is now wedged nicely under the 50-day moving average as well as active resistance levels. Ideal stop-loss for this trade is 19.67.

Potential Swing Trade (Short): Cray Inc. (CRAY) – This stock has been on a downtrend since it established new highs back in August of 2009. We’ve seen a nice rally back up to its previous lower-low and offers an excellent Risk/Reward opportunity. Stop-loss should be placed at 5.63.

Potential Swing Trade (Short): Stone Energy (SGY) – Like CRAY, this stock is also in a confirmed downtrend and has been doing so since November of last year. It has managed to rally right up to the 50-day moving average and remain there over the past four trading sessions (all of last week). Its string of lower-highs and lower-lows makes me believe that the mini-rally over the past couple of weeks will be short-lived. Place you stop at  18.01.