The players are selling before the new year. We saw the initial hint of fear earlier this week w/the VIX up as the SP500 was up. The current move continues to takes us off the market's overbought position, and IMO, sets us up for a new year rally.
I still think the Vix breaks down, and that complacency should drive protection. The SP500 is just not at that point yet. I covered my call protections with this weakness.
If market weakness is seen on Jan 4th, I will probably be a buyer into the weakness. If we rally (and I think we rally come Jan 4th) I will be a seller of Jan calls for GS, COST and look to buy SP500 put protection.
Also, a toast to a great 2010. Have a very happy New Year everyone.