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HAPPY TURKEY DAY!

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On a day when millions are feasting on turkey, we shouldn’t worry about the species. Why? There are still a bunch of them, alive and well, and running the country. January 20th, we’ll get a new batch. The species is the same, but the gobble gobble is different. Either way, it seems like our goose is cooked.

Let’s be optimistic. It’s more fun than being realistic. Let’s hope that, this time next year, we will have reason to be thankful for the new batch. Keep the stuffing handy, just in case.

It’s been a year of an unprecedented market meltdown, millions of job losses, and a recession. In spite of all the misery, there are still things to be thankful for this year. There may not be quite as many as there have been in previous year. But, there’s still a lot of things in our life to appreciate – like health, family, Dollar Stores, Craig’s List, not necessarily in that order.

I want you all to know how thankful I am for my subscribers. You mean a lot to me. Many of you have been with me for years. I look forward to working with you all for years to come. I can promise you a future filled smiles, profits and some surprises along the way.

Ongoing Strategy 100% Profitable
Last Sunday, when I was wrapping up the November cycle results, I neglected to point out that our Ongoing Strategy results were 100% profitable, as usual. See below for our accumulative totals. We’ll be looking for a new Ongoing Strategy position. Stay tuned . . .

The Market
What’s coming up? Let’s look into our crystal ball. Actually, I think our crystal ball is defective. It’s track record of predicting anything pretty much sucks. At any rate, here’s what it says. After three up days, it’s likely we’ll soon give back a chunk of our gains. This should take a few days, probably early next week. Then, the market will move back up and break through the upper resistance. Sounds good, doesn’t it? Remember, I bought this crystal ball used from a directional trader.

Our Position
Our December 330/320 bull put spread is in pretty good shape right now with a little more than three weeks to expiration. If the market bounces up on Friday or Monday, I might even consider a December bear call spread for our portfolio. I’ll keep you posted.

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DECEMBER PORTFOLIO POSITION

CPTI DECEMBER Position #1 - RUT Bull Put Spread – 385.31
On 11/6, with the RUT at about 510, we sold 20 RUT December 330 puts and bought 20 RUT December 320 puts for a credit of $.55 ($1,100). Maintenance is $20,000.

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ONGOING STRATEGY - THE ZERO-PLUS Strategy
In the past, I outlined a strategy based on an initial investment of $100,000. At that time, $74,000 was spent on zero coupon bonds maturing in about seven years at a value of $100,000. The principal $100,000 investment is guaranteed. We're trading the remaining $26,000 to generate a "risk free" return on the original investment. We are not compounding our profits by dramatically increasing the number of contracts we trade. With the November profits, our new cash total is $68,840 ($66,440 + $2,400).

ZERO PLUS POSITION – RUT Bull Put Spread – 385.31
On 10/16. we sold 30 of the November 360 bull put spreads and bought 30 of the November RUT 350 spreads for a credit of $.80 ($2,400).. Our profit was $2,400.

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Couch Potato Trader Disclaimer
All results reported in this section are hypothetical. While the numbers represented here may have been achieved or beaten by our readers, we make no representation that any individual investor achieved these exact results. The tracking for the plays listed in this section uses closing prices for the day the newsletter is published and it is not meant to imply that any reader actually received those prices (though many often do) or participated in these recommendations (even though many do). The portfolio represented here is hypothetical and for investment education purposes only. It is only an illustration of what type of gains a knowledgeable trader might receive utilizing these strategies. If you don't get close to these results, guess what. It isn't the fault of the strategies.

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