Week 1 2012 Performance...Good start to the New Year

Well to the New Year 2012.  The year and week opened up on a very positive note with most stocks opening up deep in the black but only to retreat as the week progressed.  Overall the fund was up 3.6% one of the best weeks we have had in months.

The big leader this week was SodaStream, SODA up almost 19% for the week on news the company has signed a deal with Kraft to add Crystal Light and Country Time Lemonade to it's lineup.  Under a licensing agreement,SodaStream will add the two Kraft brands to its portfolio of more than 120 flavors that can be made into carbonated drinks at home using SodaStream machines, sales of which have boomed recently in the U.S. Terms of the deal were not disclosed.

Other big moves included Owens Illinois, OI was up 10% on basically no news and BMW, BAMXY up 5.8%.  The North American Auto show opens up here in Detroit this week so it will be interesting to see how the auto companies move this week in trading.

We did add one new position this week to the option portfolio which was purchasing put options on Best Buy, BBY.  The thesis here is that the company will report week earnings due to lower volume and decreased margins.  Best Buy is basically becoming Amazon's storefront with people going into Best Buy stores to review products and then going online to Amazon to find the best deal.  I would expect this trend which has already been formed to continue on as well as Best Buy feeling margin pressure by having to discount to have customers purchase there products in store or online to match Amazon.

Here is a look into the upcoming week's economic calendar.  The beige book is likely to attract some attention on Wednesday but other than that it looks like a pretty quiet week.  With that saying, look for any news coming out of Europe to play an influential role in the markets this week.