Job numbers could be a catalyst to drive the market even higher. Analysis that "higher prices" (from S&P 1295 level) are ahead in the fist week of Feb is not changed. There seems to be more upside before any downtrend.
Unpredictable things happen during expiration week, so be prepared for market gain or break at any moment. I want to ride the momentum train but want to preserve the capital. FXI, the new position opened today, align well with this strategy. A drop/rise in the China market by 7% will still be profitable for this trade.
We were bang on the Goldman Sach direction (see earlier post). EBay should also perform well after the results.
Overall, We are running over 90% success rate for all the trades in 2012. This is significant considering the risk level for our trades. We never invested more than 50% of the portfolio at any time, and mostly got our gains from Beta (Options Greeks).
Let's ride the wave, but stay cautious.
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