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Wednesday, December 31, 2014

An interesting end to the year as the Dow fell 160 points on light volume.  The advance/declines were about 2 to 1 negative.  The summation index is still trending higher.  I'm not sure what to make of todays action but I am still bullish on the beginning of 2015.  My open order for the OEX January calls wasn't filled even though the premium price was touched.  Once again the trading in the OEX electronic market does not seem legitimate.  I adjusted my order up to get filled but it was not at the price I desired.  I will once again look into the SPY contract to trade the overall stock market.  There appears to be much more liquidity and fairness over there.  That particular contract trades very rapidly and that is something that I am not used to.  Getting short term oversold now for the major stock indices.  GE fell almost 1/3 and the volume picked up from yesterday but is still light.  My March calls here are in the red.  Gold fell back from what it gained yesterday as the US dollar was higher.  The gold shares didn't move much however.  The XAU was off 1/4 and GDX was only slightly lower.  ABX, GG and NEM had fractional losses on light volume.  Too late in my opinion to get the January gold share calls here.  USO finished the day up a tad after being lower early.  My open order for the USO February calls was filled.  It is showing a small profit.  Mentally I'm feeling OK.  I expect Friday to be a positive one for the stock indexes and I would be surprised if it wasn't.  I'm confident in the OEX trade made today but the market as always will go where it wants.  I actually have three trades on at the moment and that is not my usual scenario.  It will be important to get off to a good start in 2015.  I feel that I am positioned to do that.  But who knows?  It's an interesting game.  Tomorrow is a holiday around the world and some markets will be closed on Friday as well.  We should have everybody back at their trading desks on Monday.  I'll be glad to see 2014 come to an end because it was another losing year for me in the options market.  Hopefully the risk control stop loss orders will bode well for a better cap on the losing trades in 2015.  My themes for the beginning of the new year are higher stock prices overall and a bounce in the oil market.  Happy New Year everyone!

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