Monthly Archives: December 2015

12-17-15 – Trading Strategy

12-17-15 Trading Strategy

Real time portfolio updates hereĀ 

What I’m selling


  • No current holdings

What I’m buying


Buy SPXL (S&P 500) Limit @ $86.00
Sell SPXL (S&P 500) Limit @ $92.50 (7.56% Profit)
Sell SPXL (S&P 500) Stop Limit @ $82.50 (4.07% Loss)

Buy PIN (Non Leveraged India) Limit @ $19.00
Sell PIN (Non Leveraged India) Limit @ $19.75 (3.95% Profit)

Buy EWJ (Non Leveraged Japan) Limit @ $12.30
Sell EWJ (Non Leveraged Japan) Limit @ $12.65 (2.85% Profit)

What I’m in


  • No current holdings

Today’s updates


Market Snapshot 12-16-15

It’s official, the .50% interest rate hike will take effect tomorrow. The major news is out and the markets have reacted. As you can see from above it was pretty bullish across the globe except for (GASL) Natural Gas Companies, UWTI (Crude Oil) and TMF (20+ Year Treasury Bonds).

With the major news out, we can start to give some validation to the trade setups that are developing. But first, I was able to take advantage of a quick trade today in XIV (Inverse VIX) shortly after the FOMC announcement. Unfortunately I wasn’t in a spot where I could track the multiple breakouts occurring so I took the one I thought would be most affected and that’s the VIX.

 

MarketĀ order for XIV (Inverse VIX) filled @ $26.80
Market order for XIV (Inverse VIX) sold @ market close for $27.23 for a 1.87% profit

Here is what the chart looked like today. You will see that I put in the same trend channels and support levels even on an intraday chart as I do on daily charts. The techniques I teach in my Educational Series apply to any time frame, but the % returns are different because of the time frame as well.

After the 11am announcement I waited to see what would develop, XIV had a fake out drop but once it exceeded the 11am high I put in a market order and got a very favorable entry as price was bouncing widely.

The intraday high went up as high as $27.75 before it fell lower. Unfortunately we didn’t get the last minute spike to break that high so I put in a market order 10 seconds before the market close.

I have no interest in day trading and this was simply an exceptional day that didn’t gear towards putting in any orders until one could gauge direction after the FOMC announcement.

XIV 12-16-15

What I’m Watching


BRZU (Brazil) very strong move up today back in it’s sideways channel on a HUGE amount of volume. Price is still within it’s downward trend channel, PPO is still negative and no moving averages have been crossed so I’m waiting for more proof of this move before I get in.

BRZU 12-16-15

DRN (Real Estate) had a high right at the resistance level of $75.00 and closed just a bit lower. As I’ve been saying, it needs to break $75.00 to confirm this is truly a move higher.

DRN 12-16-15

EDC (Emerging Markets) hit the top of it’s trend channel and PPO has turned positive. I’m waiting for $12.50 to be broken to confirm this is a reversal and not a correction within the existing trend channel.

EDC 12-16-15

 

New Open Orders for 12/17/15


Buy SPXL (S&P 500) Limit @ $86.00
Sell SPXL (S&P 500) Limit @ $92.50 (7.56% Profit)
Sell SPXL (S&P 500) Stop Limit @ $82.50 (4.07% Loss)

As I mentioned yesterday, I was anticipating a possible break out of the downward trend lines and PPO turning positive across all 3 major moving averages. Today that happened on heavy volume which is a 4/4 on the B12 Trade Confidence Scale as I discuss in my Educational Series. Because this has moved 3 days up in a row, I’m putting in a slightly lower limit order instead of anticipating an opening gap higher. My limit is set at $92.50 because I still think it will find resistance at that level like it did before.

SPXL 12-16-15

Buy PIN (Non Leveraged India) Limit @ $19.00
Sell PIN (Non Leveraged India) Limit @ $19.75 (3.95% Profit)

I’m buying PIN (None Leveraged India) instead of (INDL) because PIN has much more volume which makes it easier to get in and out quickly. PIN has reclaimed the price gap past $18.75, PPO has turned positive and price has moved past the 20-day moving average. It’s had a large move in a short period of time so I’m asking for a sharp pullback at $19.00 to reduce my downside risk in the position.

PIN 12-16-15

Buy EWJ (Non Leveraged Japan) Limit @ $12.30
Sell EWJ (Non Leveraged Japan) Limit @ $12.65 (2.85% Profit)

I’m trying to get into EWJ (Non Leveraged Japan) instead of JPNL (Leveraged Japan) because of the amount of daily volume. JPNL is a rather light weight traded ETF.

I’m trying to get in at $12.30 since that was the previous support level that has been broken. Price has broken out of it’s recent downtrend, PPO is positive and price has broken all 3 major moving averages.

EWJ 12-16-15