DE and CVX
Today’s losses on DE and CVX leave my account value around $8000. This is profit as the original $3000 investment has already been pulled out. At this point, I am very bullish on the market. I understand the risk associated with the fiscal cliff but believe a strong market surge will occur when the cliff components are dealt with. There is also a lot of selling going on in the market due to the tax implications of the fiscal cliff when it comes to capital gains taxes. I suspect much of the money that has left the market over the past 2 weeks will return at the beginning of 2013.
With my bullish bias, I am looking to still hold CVX and DE. This isn’t normal action that I would take since both my stops are broken. I am taking this chance more on gut feel. My total capital at risk is only $3400 leaving me with about 4600 in cash to work with. Monday is the last trading day of the year and between congress, Obama, and regular market dynamics, the next big move in the market is probably around the corner.