Week 2 2012 Performance...Basically Flat but things will start to get interesting

Week over week performance was up a minuscule .2%, so basically we were flat.  There was a lot of movement within the individual names in the fund especially on the option side of the fence led by a big increase in Crocs and a subsequent decline in our Disney call options.  Crocs was up on news that the company had forecasted revenue of $200 million to $205 million for the quarter that ended on Dec. 31. Coming in at the high end of that range will take annual revenue over $1 billion for the first time, Crocs said.  Analysts expect Crocs to report $204.4 million in revenue in the fourth quarter, according to FactSet.


On the long side of the portfolio Natural Gas UNG took a plunge on continued weakness in natural gas pricing due to increases in supplies with all of the new discoveries.  I still believe that long-term natural gas is a good story especially if the US can begin to export which is extremely challenging.  New energy policies focusing oil consumption would also help support pricing as well.  From a technical perspective the chart if definitely in a downward spiral, so I think it may be time to cut our losses and wait for the bottom to occur and look at getting back in once things stabilize.


Since I'm not quite sure what direction the market is going to take and given that we have entered into earnings season which tends to add to the volatility mix look for us to add to our option portfolio rather than going long equities straight up.