Thursday, December 6, 2007

The Little Engine that Could?

My gut says that we will get a decent December/January rally here. My brain is telling me to wait until we get the signal. The S&P is right at the cusp of pulling it off this morning and reaching 1490. Will the Little Engine make it?

It not only has to surpass it intraday on volume, but it needs to close above it. The timing is interesting as we await tomorrow's jobs report. It is poised to make a move if the news is well received. If not, well we may be retesting the lows.

So I sit and wait and watch myself throw away a little cash with my XLF puts, but it helps me to sleep at night. My portfolio has grown larger 4 out of the last 5 trading days (although marginally), so I shouldn't be complaining.

Come on Little Engine. This investor wants to go long and go deep for the next 60 days.

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