The Week Ahead 12/28/09

{+++}Santa continues to be good to equity markets around the world. China’s mainland stock index rose by 2% after news reports there suggested the government was considering further stimulus measures. European bourses are at or near their 2009 highs after an early close and US indices are there as well. A stronger than expected durable goods reading ex-transportation, and the lowest weekly initial jobless claims figure since before the fall of Lehman Brothers added to the holiday cheer before the NY open. The better than expected data put some renewed pressure on bond prices sending the 10-year yield through 3.75% for the first time since August.

The Greenback was under a bit of pressure heading into the data as the Euro briefly reclaimed the 1.44 mark. But the hotter than expected data brought some bids in pushing the Euro back towards 1.4375 and Cable into negative territory on the day at 1.5950. Feb crude is consolidating  around $76.50 while gold prices have reclaimed $1100.

Stocks volatility has been relatively muted with the VIX remaining below 20 and to no one’s surprise volumes are anemic.

I think Apple could continue to run into earnings, although that seems hard to believe after its recent run up. There was big chatter about their new tablet release on Friday and the big meeting planned in January. Earnings just so you know, are the third week of January. $220 could be in the cards. God knows thee are enough $275 targets out there. I was naked the Jan 185 puts at $4 I covered them on Friday around .65 cents, it was a great win. I covered 2/3 of them¬† and rolled into the Jan. 195 puts for more premium. I don’t make option recommendations with you guys but I’m just keeping you in the loop. I don’t do exotic strategies, I sell naked puts and calls. My track record this year was off the chart. Maybe I should start some options on the site, I’m very reluctant because although I will take risk, I just don’t want anyone who is semi unsophisticated getting there head blown off.

GOOG looks like it wants to tag $650 and I am adding IBM to the long list tonight. I tweeted my buy on IBM on Friday at around $130. The daily chart looks great and a break through 131 with volume should set it loose.

I hope you’re long VNO, the chart looks exceptional and it’s on our list. None of our shorts are working and they have fore the most part been stopped. I underestimated the power of this market and shorts had some flashes of brilliance but quickly burned out.

This week will be light volume again but that doesn’t mean we can’t make money. I am focusing strictly on 2010 and working diligently on getting my game plan set. I am excited for the new year and I have made a list mentally(soon to paper) of the mistakes that I have made. I will share them with you when it’s done. I plan on having a very good year and hopefully I can help you all make some extra loot. That is always my goal.

Let’s have a great week and three words of advice-prepare prepare, prepare for 2010.

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