The Wizetrade Options Blog

If you watched Greek Speak yesterday on WizetradeTV-HD or subscribe to Wizetrade Alerts, you know that Jason Ramus brought some great opportunities to the table for the upcoming year & some even for the next couple of years. With the market pulling back today, some of these entries are even better than they were yesterday! So I've decided to share some of them again. Keep in mind, these are yesterday's quotes so use your best judgement if you're considering following along with it.

I found the following article (posted on www.businessinsider.com on Dec. 31, 2009) by way of a tweet posted by @PairsTrades on www.twitter.com. I love reading these stories at the beginning and end of the year. The speculation is quite interesting. For example, Borders Group (NYSE: BGP) is on the list for next year, but it was also on a list of this nature last year. Hmmm....

http://www.businessinsider.com/brands-that-will-disappear-in-2010-2009-12#newsweek-1

Have a Happy New Year & Better Trades in the Year to Come!!!

Angie C.

Follow me on twitter: www.twitter.com/WTV_Angie

Here are a couple of interesting articles concerning Congress's proposed new trader tax. You can also read my thoughts on the issue, read my blog on Dec. 2, 2009 titled "Stop the Trader Tax!!!"

Steven Place, with InvestingwithOptions.com, had some interesting analysis on this topic at  http://www.investingwithoptions.com/2009/12/my-comments-on-the-trader-tax/.

Chris Glorioso posted his insight on the Huffington Post online at http://www.huffingtonpost.com/chris-glorioso/the-wall-street-trader-ta_b_400871.html.

To sign a petition against this Tax, click below.

http://www.rallycongress.com/greentradertax-traders-association1/

http://www.rallycongress.com/no2tradertax/1536/tell-congres-to-block-trader-tax/

Follow me on Twitter: www.twitter.com/WTV_Angie

Happy Holidays!

Today's rally takes the NASDAQ to a new 52 wk high ($2,242.22). While this is incredibly bullish for today and other Indices also showing aggressive strength, it should be recognized that the Dow ($DJI) and the S&P 500 ($SPX) have not made new highs today. Both Indices on Friday were near the lowest end of the channel that the market has been caught in for over a month. To expect them to cover the full range of that movement back to the resistance levels in one day, while not impossible, is not likely to happen.

So where does this leave us for the rest of the week? As I've already mentioned, the market is in a channel. It's very important to realize this is a low volume time of year. I don't want to predict where the market is going from here, but I can say this- don't get ahead of yourself or the market. Small moves are key right now. Make sure to stick to your plan and do not risk more than you can tolerate. I've personally been sitting on the sidelines waiting for the new year. When volume returns to these markets we will likely see a breakout accompany it so be aware. In the meantime if you're trying to take advantage of the small range between our support and resistance, just remember- always trade your plan.

Angie C

Follow me on twitter: http://www.wizetradetv.com/?cid=07010

Technology is holding onto a reasonable lead in the markets today, with the Nasdaq Composite up about 25 points with all other indices moving back and forth around even on the day.

Some contributing stocks to this positive gain include:

Take Two Interactive Software, Inc (TTWO) is up a little more than 11% today; Research In Motion Limited (RIMM) up over 10%; and Celgene Corporation (CELG) up over 10 %.

Angie C.

Follow me on twitter: http://www.wizetradetv.com/?cid=07010

FOMC decided to leave interest rates unchanged at 0.50% (big surprise).  To read the official story, check out htttp://www.federalreserve.gov/newsevents/press/monetary/20091216a.htm.

The market reacted by first running up, then pulling back enough to give up almost all of the day's gains. As of this writing, the DOW is down 18 points, the S& P is only up 1 point. Can anyone else see the evidence of the inability to break hi's?

Angie C.

The FOMC tomorrow is likely to repeat its pledge to keep interest rates near zero for an “extended period,” economists say, because inflation is slowing and unemployment remains near a 26-year high.

By Scott Lanman and Steve Matthews, bloomberg.com, 12/15/09

The FOMC announcement for the December 15-16 FOMC policy meeting is expected to leave the fed funds target rate unchanged at a range of zero to 0.25 percent. However, traders will be watching to see if the "extended period" language is qualified with any additional wording regarding the future path of the fed funds rate. Traders also will look for updates on the Fed's view of the recovery and on the Fed's plan for unwinding balance sheet expansion.

nasdaq.com, 12/15/09, FOMC Meeting Announcement

Visa (ticker symbol: V) soared higer on an upgrade today breaking short term resistance ($83.40) to make gains of over 3%.

A takeover deal of XTO Energy (XTO) by Exxon Mobil Corp (XOM) spiked XTO stock price by more than 14% & dropped XOM stock slightly more than 4%.

Citigroup (C) announced plans to repay the US government for their share of the TARP money dropping the stock more than 6%.

Angie C.

Follow me on twitter: www.twitter.com/WTV_Angie

Oregon’s Democratic Representative Peter DeFazio  has proposed a new bill (HR 1068) which I’ve seen by both titles "Let Wall Street Pay for Wall Street's Bailout Act of 2009" and "Let Wall Street Pay for the Restoration of Main Street Act of 2009." This representative wants Wall Street to pay for the collapse of the market and shady practices that have lead to financial discrepancies.  But I don’t get this… they find it acceptable to bail out the banks, but it’s necessary to punish the investors!?! It almost makes me livid to think that someone really thinks this makes sense! I find it amazing that there is so much finger pointing going on up there on Capitol Hill. I always learned that when you point a finger at someone, you find 3 more pointing back at you.

This proposal is looking to enforce a 0.25% tax on transactions including buying and selling of stocks, options and futures. This money will be used to pay back the money used to bail out banks and troubled businesses.

Let’s step back and look at this “objectively.”  The government decides to give these “troubled” businesses money to bail them out (which you and I funded) and now they’re going to tax traders (you and I) to replace that money which you and I already paid for. Does anyone else see something wrong with this picture?

Well, if you feel the same as I do, I would ask that you sign one or all of the petitions below. We have to tell Congress, our Representatives and the Government that enough is enough!

http://www.rallycongress.com/greentradertax-traders-association1/

http://www.rallycongress.com/no2tradertax/1536/tell-congres-to-block-trader-tax/

As the market pulls back today after a very strong run up to resistance, I'm looking at the following points for immediate support. When I say immediate support, I'm expecting a "pause" from the market at these levels before continuing or bouncing.

$DJI (Dow) - $10,100

$SPX (S&P 500) - $1,080

Angie C.

View Disclaimer