Buy UNP (sell puts)

Buy UNP via selling Jan 125 puts @130.2

I buy Union Pacific railroad, it broke out from a base at 125 and there is minor support at 127. Since breaking out, it made a higher low and now a higher high. If it does move down to the strike price, a roll down and out is the plan. Being under-invested is an uncomfortable feeling during this roaring bull week for the stock market.

Elsewhere, gold and bonds are moving lower, in part because the slowing and possible end of the Fed's massive quantitative easing program. I wistfully look at the up move in TBT (inverse bond ETF) and how little I participated. 

I continue to be tempted to take a shot at the short side of the stock market, but fighting the tape can be an expensive battle. I remind myself that often it is the third time that will break. The stock market has not even faced strike one. The tepid decline on Thursday, did not scare any bull, or excite any bears. 

I went into 2013 expect a down year for the stock market. So far I have been wrong.

Long APC, GPS, IWM, LGF, UNP, XRT