Trade Ideas for March 3, 2010

A quiet morning so far as futures have remained relatively flat throughout the evening and early morning, which for a bear such as myself, is great for a change. Be ready though, because we have a lot more news coming out today than we had yesterday, with the MBA Purchase Applications at 7am ET, Challenger Job-Cut Report at 7:30am, ADP Employment Report at 8:15am, ISM Non-Manufacturing Index at 10am, and Biege Book at 2pm. Not to  mention a couple of Fed Bank Presidents speaking today around the country at various conferences. So with all those reports coming out, definitely expect some waves to be made in the hours leading up to, and shortly after the opening bell.

The magic number for me is 1125 on the S&P – if we break and close above it today, I plan on closing out my short positions. At that point, my bear argument for this market will have become null and void and as a result, I’ll begin looking to build a much more bullish portfolio.

Here are Today’s Trading Ideas.

Potential Swing Trade (Long): Barnes & Noble (BKS) – Since July of last year, this stock has been range bound, but of late, has begun to show some potential with a new trendline developing in the early stages. Its latest rally has been followed up by a pullback to the Fibonacci 50% retracement level. Also worth mentioning is the pattern of higher-highs and higher-lows that are in place. With that said, put your stop-loss at 18.95.

Click here to See the Rest of My Trading Ideas.

 Potential Swing Trade (Long): PowerShares US Dollar Index Bullish (UUP) – US Dollar has finally broken out, the inverse between it and equities seems to be broken, which makes it an ideal position, even in a bull market. The euro is dropping like a rock, which further strengthens the US Dollar in the process. Recently the UUP has managed to consolidate near its highs and work off the overbought conditions of late. Recommend a stop-loss of 23.25.

Potential Swing Trade (Short): United Parcel Service (UPS) – After a high being reached in January, this stock had a drastic decline, followed by a 50% counter rally to overhead resistance. Also, take a look at the last two trading days, with the shooting star doji’s that have been seen the past two days – a clear warning signal. This stock chart is broken, and could see further downside if the general markets pull off of this bullish tear of late. Place your stop-loss at 60.30.

Potential Swing Trade (Short): Blackrock Inc. (BLK) – This was yesterday’s pick as well, but the chart only got more bearish after yesterday, so I figured it was worth reposting. After making new highs in January, this stock fell under its own weight and took a lot of shareholder profits with it. Since its lows in February, the stock has managed to put together a meager rally of sorts on low volume, which appears to me to be very shortable. Also, the bearish engulfing candle patter put in yesterday is a huge negative for the stock. Ideal stop-loss here is 229.10.