Editors Note:

Santa may decide traders were naughty and not reward us with a continued rally. The "Santa Rally" is considered the last five days of the year and the first two days of January. There is a saying, "If Santa Claus should fail to call, bears may come to Broad and Wall."

There is a very good possibility Santa is going to let us down this year if the worries over the pension fund rebalance are correct.

As traders, we should also remain dormant the rest of the year. There is no fundamental reason to try and force a new play when next week could be very volatile.

Tuesday is now my bet for Dow 20K.

If you are just dying for something to play, buy February calls on the $VIX. The $15 call is now $2.40 and a spike to the $20 level would be a decent payday. I am not recommending it because we already have four shorts in anticipation of a January decline.



NEW DIRECTIONAL CALL PLAYS

No New Bullish Plays


NEW DIRECTIONAL PUT PLAYS

No New Bearish Plays