The market sentiment stayed negative this week as the "fiscal cliff" kept the buyers on the sideline. FB bucked the trend and we caught a couple of quick trades on its bursts. On the downside, we played it safe with puts on CAT and LVS December puts. On Friday, the politicians finally showed a bit more willingness to compromise and the markets reversed earlier loss to close slightly higher.
AAPL nearly came down to the $500 market on Friday morning, but, traded quickly back up after positive statements were made by the key players in Congress. We jumped on AAPL calls and grabbed about $10 gain/contract with 2 separate trades. Here are the closed trades for the week:
As I said in the Market Forecast last weekend, the "Markets now may be more "news-driven" than usual". Buyers seem to be staying on the sideline waiting for more clarity on the "fiscal cliff" issues, while the negative sentiment continue to push people to take profits before the year-end. Friday’s quick news conference by our Congressional leaders gave the markets a glimmer of hope. But, we’ll have to see if progress can continue to be made next week.
I’ll be back on Sunday evening with next week’s Market Forecast. Have a wonderful weekend!
Good night and HappyTrading! ™