Holiday Shortened Week
The market trade will be shortened today due to Christmas. We will also notice the market to be characterized by light volumes, random movements, and historically a bullish bias. While the market opened lower due to some of the strike talks on the gulf ports, it would be a very odd event to see the market sell off significantly today.
With that, I continue to hold my DE calls. The stock is down about .25 on the open this morning but held up relatively well during Friday’s market sell off. The stock’s resilience further shows its upside breakout potential so I want to be patient with the trade. After adding to the position last week, I am looking to use the 20 day moving average as my stopping point. This varies from my original plan with the 7 day moving average but as I discussed on Friday, the actions of that day caused me to adjust my plan. My biggest concern with the trade comes from the fiscal cliff idea that capital gains taxes will rise making it prudent for people to sell their stocks before year end and repurchase them. We will see if that alters the historically bullish nature of the market into year end.
I wish you all a Merry Christmas and Happy holiday! I know many have varying traditions and ways to celebrate the holiday season and I pray they all bring your families closer together.