EOT Position Update – December 2, 2015
Market Snapshot
We’re into the home stretch of 2015.
Right now the S&P 500 is up 3% year-to-date. The October rally erased the September losses. But November brought a return to the flat market that was the norm for most of the year.
Once again, the strong performance of a few mega-cap stocks is the force that is keeping the S&P 500 positive for the year. The vast majority of stocks has seen their stock price move lower this year.
Will a Santa Claus rally emerge to propel the S&P 500 high into year end?
One thing that has been a positive for US stocks is the strong US Dollar.
Historically, the S&P 500 moves in lockstep with the value of the US Dollar. And the dollar has been showing signs of resuming the uptrend that has been in place over the last few years.
However, the strong US Dollar continues to put pressure on commodity prices and emerging market stocks.
So, there’s a good chance a Santa Claus rally will help lift US stocks. But the gains are likely to be concentrated in sectors that aren’t exposed to commodities.
P.S. A new trade is coming out later this week.
Now, onto the updates…
Position Updates
Just a quick note: Remember, we won’t update every open position every week. We try to focus on the positions that have some significant news or price movement.
KR January 16th 2016 2015 $37.50 Calls
KR is up 3% to $38.17. It’s above the 50-day moving average with bullish momentum and building toward a breakout…. Continue holding. Support is at $35.00 and $34.00. Resistance is at $39.25 and $42.00.
Category: EOT Update
