Wednesday, December 22, 2004


When asked if I invest based on fundamentals or technicals, I respond that I invest by the seat of my pants. The old rule rules; if it works don't fix it!

Yesterday, the Dow broke out and this morning the oil inventory build was larger than expected. I bought some more ETrade on margin. It looks like the proverbial Santa Claus rally is well under-way. Oil is down $1.80 and all major stock indexes have reacted.

For good measure and just for the entertainment value, I purchased call options on the QQQQ this morning.

Caution! I am an amateur investor and do not recommend investments. This blog is written for informational, educational and entertainment purposes. I certainly do not recommend options as investments. On balance, I have enjoyed success in stocks, bonds and real estate investments. I occasionally buy puts or calls on the indexes but I do not expect to make money. Where the QQQQ will trade in the next few weeks is a pure guess.

Having said the above, I find that there is healthy skepticism in the market. The unbridled optimism that happens at the end of a long bull move is not present. Market mavens continue to discuss the potential problems to be faced in the New Year. At best, the expectations are for moderate 2005 returns.


Jack's Old Merrill Pal said...

Its a sad day when everyday conversation has to have reps/disclaimers to prevent lawsuits!!!!!!!!