SANTA CLAUS BREAKS OUT!

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.