The Christmas rally breakout has begun to falter and stocks are correcting. Could this be a sign of things to come as investors take profits in the new year? Was the S&P 500's breakout to new high just a head fake (or bull trap) after a six-week consolidation?
Our market outlook for January is not very bullish. Traders will want to reconsider their stop loss placement and how much risk they're willing to take. Many of the commodity-related stocks have begun to correct again. Once again I'm suggesting that readers may want to take profits now in the RAI position.
Disclaimer: At any given time the author may have positions in any or all of any companies mentioned in the Leaps Newsletter.
--Position Summary Table--
Table lists Directional CALL or PUT/LEAPS only.
Insurance puts, if applicable, are not shown.
Red symbol/name represents a dropped play this week.
Jim's portfolio and updates has been included in the normal play updates section.