Monthly Archives: December 2015

12-18-15 – Trading Strategy

12-18-15 Trading Strategy

Real time portfolio updates here 

What I’m selling


Sell EWJ (Non Leveraged Japan) Limit @ $12.65 (2.85% Profit)
Sell EWJ (Non Leveraged Japan) Stop Limit @ $12.10 (1.63% Loss)

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

What I’m buying


Buy DRV (Inverse Real Estate) Limit @ $20.00
Buy DRV (Inverse Real Estate) Stop Limit @ 20.40
Sell DRV (Inverse Real Estate) Limit @ $21.20 (3.92% or 6.00% Profit)

 

What I’m in


12/17/15 – SPXL (S&P 500) @ $86.00
12/17/15 – EWJ (Non Leveraged Japan) @ $12.30

Today’s updates


Limit order for SPXL (S&P 500) filled @ $86.00
Limit order for EWJ (Non Leveraged Japan) filled @ $12.30

 

Market Snapshot 12-17-15

Missed my order for PIN (Non Leveraged India) @ $19.00 

This may be a good thing because with today’s turn lower I can almost trace out an expanding triangle which would mean this is going to be a bearish move lower much like was seen recently with RUSL (Russia). One day doesn’t necessarily confirm, so I’ll watch on this again tomorrow.

PIN 12-17-15

What I’m Watching


EDC (Emerging Markets) moved lower right off the top of it’s upper trend channel and didn’t break the $12.50. This now leaves this open to a possible bearish move tomorrow or another day waiting for it to break $12.50. Not a solid trade setup yet though.

EDC 12-17-15

JNUG (Junior Gold Miners) still continues to tease the extremes of it’s sideways channel of $29 – $34. A morning gap lower tomorrow could signal a nice bearish play in JDST (Inverse Junior Gold Miners)

JNUG 12-17-15

UGLD (Gold) is testing it’s 2+ year lower trend line again. It has yet to break it in a very long time, so I’m watching an waiting to see if we get a strong bounce again. The last bounce only lasted two days, so I may be watching longer.

UGLD 12-17-15

 

What I’m Buying


Buy DRV (Inverse Real Estate) Limit @ $20.00
Buy DRV (Inverse Real Estate) Stop Limit @ 20.40
Sell DRV (Inverse Real Estate) Limit @ $21.20 (3.92% or 6.00% Profit)

I  have recently moved my trading account to Tradestation which allows me to put in practically any type of order I can think of. Normally this would be an OCO (Order Cancels Order) which would cancel one of my two buy orders if one was filled. However, with Fidelity if one of those orders was filled, I would have to enter a sell order afterwards.

With Tradestation I can also enter a limit order no matter which order gets filled.

What I like about this is we have a clear bounce to the downside off of resistance in DRN (Real Estate) and we already have historical precedence of $75.00 holding with a sharp move down.

I’m putting in a 1x ATR for my profit target tomorrow since if either order fills I can walk away quickly with a profit if it reaches $21.20.

Here is the chart of DRN (Real Estate) and it’s bounce down again from $75.00

DRN 12-17-15

Here is my order tomorrow for DRV (Inverse Real Estate)

DRV 12-17-15

What I’m selling


Sell EWJ (Non Leveraged Japan) Limit @ $12.65 (2.85% Profit)
Sell EWJ (Non Leveraged Japan) Stop Limit @ $12.10 (1.63% Loss)

I was hoping for a pull back to get in cheaper, but I didn’t expect this much of a pullback. What I don’t like is the fact that today’s low was on the close. This means we could easily have more movement lower in the morning and it’s going to take an afternoon recovery to turn this around. This potential move started with a gap higher, so I am putting my stop just below this gap to invalidate this bullish move and confirm it was just a pullback.

EWJ 12-17-15

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

Very bearish day completely wiping out all bullish signals. PPO turned negative, price fell below all the moving averages. There is one last possible attempt to fall back into it’s existing downtrend lines and I will be stopped out. It looks like the market volatility is not over and I will probably be stopped out tomorrow.

SPXL 12-17-15