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Market Takes A Breather: MA, V, ICE, CME, CF, CLF, APA

|Includes: APA, CF, CLF, CME, ICE, Mastercard, Inc. (MA), V

Well, it's nearly the end of the year, with only 2 trading days left (Friday is the 1st and it's a market holiday).  The volume was light and the market took a breather, which was discussed in my Market Forecast this weekend.  Not much new development besides pockets of strength here and there.  On Monday, ICE and CME made a breakout run.  Today, we saw strength in MA and V.  These were also mentioned in the Sector Watch this weekend.

The market seemed a bit nervous near the close today as VIX bounced to close just above 20.  I took the opportunity to close some long positions to decrease our exposure on the market:

December 29, 2009
01:01 | HappyTrading CF ($93.40) Sold to Close CFAR Jan 90 calls, at $5.50 +2%
12:55 | HappyTrading CLF ($47.04) Sold to Close CGJAC Jan 42 calls, at $5.30 +29%
12:44 | HappyTrading APA ($104.64) Sold to Close APAAT Jan 100 calls, at $5.40 +35%

Gold continued to be weak and close below $1100 today.  While the market consolidates, we'll trade lightly and keep lots of cash.  Financials still seem undecided, as big banks fight to break above recent resistances.  We'll need to see the financials break out to feel more comfortable with this rally.  Coals and steels pulled back today, finally.  If the market strengthens again, these should see more buyers.

Good night and HappyTrading! ™

Disclosure: Long V