Great First Week of 2012

It's the perfect way to start 2012. We are up over 20% on the portfolio and over 100% gains for all the trades in a week.

Overall, S&P is still struck in 1260 and 1285. It was surprising to see action/strength in the market today. Commodities didn't drop in spite of strength in the dollar. It indicates that market has strength but no conviction yet to go passed the resistance. 

Any dollar drop may give bulls the reasons to run up the stocks. However, Alcoa will kick-off the results season and market should focus more on financial results than Europe. Alcoa results are likely to be weak giving bear a reason to double their sell positions. I'd stay in a market neutral, and play calendar calls until the market makes a decision.

Congratulations to all who jumped on Neflix bandwagon. I'd also consider long term GS calls. Furthermore, watch GLD which is making strong moves in spite of dollar weakness.

Go Short and Long Simultaneously

US market is outperforming the global markets. Watch out for the bounce back in MA, and XRT.

PFF looks like a perfect sell, but there isn't any good volume in the options.

It may be a good idea to simultaneously short the weak stocks and go long on the mid cap momentum stocks poised for a huge run.

Market will get direction if SPX crosses 1285 level or falls through 1260. Until then, it's range bound market between 1260 and 1285. End of the day push or Job numbers may provide a catalyst, or otherwise I am  expecting a direction next week.

Our open positions are at break even with only one day left in expiry.

Market Indecision

January effect is in play. People are buying beaten down stocks with the hope of a turnaround. Two days of 2012 are gone, and technical patterns indicate indecision. I'd avoid any new position unless a decent opportunity pops up at my desk.

Looking forward to buying in the money puts on PFF, EWJ, MGM on any 2% upside. These are overbought.

Furthermore, watch for SHLD for a potential short term bounce. Wait for an entry though.

Netflix is looking interesting, but trade with strict stop loss.

Sold JNPR at the Open for 35% Gain

We sold JNPR for 35% gain at the open. Our gains are in triple digit now. The only SPY open position is at break even now.

51% Gains on day "1" of 2012

As the expected, market went up higher but under performed gains in the global markets. There may be another day of upside before correction in a short term. I'd watch SPX 1260 for potential support, and on the upside, SPX should be capped at 1305.

We made nice gains on day "1" of 2012. Booked 17% in GLD and 32% on the Costco call. Overall 51% gains and portfolio is up by 6%. Two open trades are sitting at a loss of about 10% each and if correction kicks in, we should have them winners as well.

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Market Outlook for the Week of Jan 02

Market will be flat to negative after a shallow rise on Tuesday. Watch out for 1230 level of SPX for the support.