NEW BULLISH Plays

Ultra-Short Dow 30 - DXD - close: 39.48 change: -0.66 stop: 37.90

Why We Like It:
Tuesday's market bounce was unexpected but that doesn't mean I'd buy it. Odds are good that yesterday's decline did begin a correction phase. We want to take advantage of any temporary weakness in the market and more specifically the Dow Jones Industrial Average with the DXD. This is a leveraged (2x) ETF that moves twice the inverse of the DJIA. I'm suggesting positions now. We'll use a stop at $37.90. More conservative traders could probably get away with a much tighter stop loss. Our first target is $41.50. Our second target is $43.00. This is an aggressive play. We want to use small position sizes.

Annotated chart:

Entry on    August 18 at $39.48 
Change since picked:     + 0.00   			
Earnings Date          00/00/00 
Average Daily Volume:       6.3 million 
Listed on  August 18, 2009    


U.S.Natural Gas ETF - UNG - close: 12.07 change: -0.05 stop: 11.80

Why We Like It:
Consider this a hedge against our WMB play. The natural gas ETF has gone straight down for about two weeks. It's short-term oversold and long-term oversold. Shares are now testing their July lows near $12.00. If there was going to be a bounce this is the spot to look for one. We'll use a tight stop under its July low. I consider this an aggressive trade and we want to use smaller position sizes. UNG is this low for a reason (namely oversupply and falling demand). This is a quick in an out play. We'll take profits at $13.00 and again at $13.75.

Annotated chart:

Entry on    August 18 at $12.07 
Change since picked:     + 0.00   			
Earnings Date          00/00/00 
Average Daily Volume:      34.3 million 
Listed on  August 18, 2009