$SPY Over the past week
there was no trading in the Alpha One Model Portfolio. The Alpha Model gained 355 basis points over
the holiday shortened week while the S&P 500 Index gained 406 basis points
in year-to-date performance. There is one open position in the Option category;
I am carrying into the coming week a trade in the .SPY141220C207. The trade is slightly under water but I am
holding it into the coming week looking for 2.57 or better.
Current portfolio holdings
are 66.3% Long and 33.7% Cash. Will be
watching $CAVM, $FFIV, $IDTI and $KMI with particular interest in the coming
week for possible additions to the portfolio.
Besides the stronger
economic data, low interest rates and stellar earnings released for the third
quarter, the markets will continue to benefit from the drop in oil prices. The
DJ Transportation Index continues to outperform with airlines, trucking and
delivery stocks all making new highs. This week also saw strong moves in retail
stocks as shoppers are putting money saved at the pumps into their holiday
shopping.
The first week of
December usually has a negative bias as portfolio managers sell-off shares of
stocks that are underperforming and adjust losing trades for tax purposes.
After the rally off the October lows we could see lower prices in the next few
days but the longer term trend remains up. My Year-end target for the S&P
500 remains at 2082.65
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