Mom's rollover IRA trades

I took control of my mother's roll over IRA which contained just over $193,0000 when I took over the daily trades of this account. Since then I am at $198,733.56 in just over 1 week of trading.

My current positions include:
1. Google January $720 option contracts (10)
2. Crox 200 shares
3. CDS 1000 shares
4. Capella Education CPLA 200 shares
5. GME 200 shares

Capella caught a less than stellar analyst opinion on Friday and it proceeded to correct, but I think that is just a temporary pull back. I am worried about CDS in its recent decline but I will keep a tight stop on that. Game stop appears to be headed higher and Crox has too much growth for it to languish in the sub $50 area.

I am looking to see Google appreciate to $740's range within this month, especially if the FED rate cuts are favorable and we do not have anymore side effects from the subprime mess, though, I still remain bearish, I will not fight the market direction, that is a losing proposition.

Gamestop is a play on multiyear growth in gaming industry and their business model cannot be beat. I look for them to have a stellar Holiday sales season, while the rest of the retail languishes. I may consider taking profits in mid January for a trade but if the stock behaves well, I will let it run with a trailing stop loss order.

Capella is a play on our economy slowing down and possible overtures of recession in the near future. The laid off work force will most likely be looking for ways to enhance their employability and I suspect that online degree granting businesses will thrive for the next two to three years. The full value of Capella has not been takn into consideration and they are one of very few institutions that grant advanced degrees. This will be a core holding of which I will plan on adding shares as this stock traverses higher. I will allow the stop loss to take me out of this position, currently at $69.58.

On my watch list are Liquidity services (LQDT), Sigma Designs (SIGM), Pharmanet Development (PDGI), and Cybersource (CYBS).

I like the chart patteron of Liquidty services (LQDT), Cybersource (CYBS), and Aerovironment (AVAV-which I will buy if it goes above $27 and stays there).

IBD follow through on NASDAQ

Don't read too much into the rally, but IBD one of the most respected financial journal out there, has declared a follow through day on the NASDAQ, which usually but not always, portends a new uptrend and an end to the correction.  We will see.

So What Now?

This coming week will be filled with many unknowns. The markets last week had a tremendous run, consistent with Bear Market snap back rallies. The intensity and ferocity has surprised me a bit as the indexes and stocks recovered parabolically. This violent price swings only happen in bear market environments so don't read too much into the main stream media's proclamation that a new rally has started. Before you jump onto that band wagon consider these points:

1. We are in the 5th year of the bull market run started in late 2002. Most bear markets average 3 to 4 years, so we are extended and due for one.
2. Continued signal by the 10 year Treasury that all is not well, currently at 3.908%. If all was well, shouldn't the yield rise, especially since if everyone is jumping onto this renewed market vigor?
3. Continuing deterioration of credit liquidity, and the very real possiblity of government intervention in our supposedly "Free Market System?"
4. The last 2 rate cuts culminating in 75 basis point reduction has yet to slow the downward deflationary spiral.
5. Inflation fight is abandoned by the FED, why? Because we are facing a more deflationary problems with growth implosion of GDP, personal spending declination, Wage deflation, Credit quality issues, and the very real contemplation by the FED that we may in fact already be in a recession. Not maybe, ABSOLUTELY!
6. Pundits and investors alike are still drinking from the "hope" koolaid. The sentiment is still cautiously bullish.
7. put to call ratio is at its lowest levels in 1 month! This is a contrarian indicator and while the reading is bullish, it is too skewed to one side and the possiblity for the market to react in the opposite grows.
8. Consumers are dead. If you don't believe me, just go check out your neighborhood Target, Walmart, mall, and casual dining establishments.
9. LBO is now coming front and center as a possible next shoe to drop that the markets haven't even considered.

There are many more reasons but 9 reasons should suffice. Never the less, markets are irrational over the short term. So be careful with your money. If the market continues to remain bullish despite the obvious, don't fight the tape but keep a modicum of common sense about you.

I am still short but ready to bail if market doesn't turn down ward.