Week 5 2012 Performance...Recovery in health & jobs report

Back at it this week recovered from the flu (I think) and just in time for the monthly jobs report on Friday which sparked a rally in the markets.  An unexpected surprise of 243k jobs were added which help lower the unemployment rate from 8.5% to 8.3%.  That marked the fastest pace of job growth since April and the fifth consecutive monthly decline in the unemployment rate.  Just about all sectors added jobs including professional and manufacturing positions.  Once again the participation rate received attention with 1.2 million people dropping off the unemployment report.


As we have discussed an improving economy tends to aid the Presidential incumbent so the Obama camp must be ecstatic about these improving numbers as the GOP candidates continue to bash each other vying for the Republican nomination.


The markets continue their blazing start to the new year with the S&P up another 3% this week and up just over 7% for the year.  It was one of the better January months in the past few decades for the most markets.  Our fund was up 1% this week and is up 8.4% for the year.  This week's performance was led by Green Mountain Coffee Roasters GMCR which blew out their EPS estimates and reported higher revenues than anticipated.  Just the opposite of what occurred last quarter.

This past week we added some put options in SDS which is the ultra short ETF for the S&P500.  Trying to add some protection as this rally is getting a little long in the tooth.  This coming week I may look to pair back some of our winnings and lock in profits.  Some additional research I have been working on gives me concern about lower earning estimates coming about in the next few quarters.

This week is lighter on the economic news front although Bernanke is speaking on Tuesday morning.  The parade of earnings releases continue this week.  I'll be watching Buffalo Wild Wings BWLD on Tuesday seeing if the cost of wings have dampened their EPS.


Have a good week.  And GO PATS!