12-22-15 – Trading Strategy

12-22-15 Trading Strategy

Real time portfolio updates here 

What I’m in

12/17/15 – SPXL (S&P 500) @ $86.00

What I’m selling

Sell SPXL (S&P 500) Limit @ $92.50 (7.56% Profit)
Sell SPXL (S&P 500) Stop @ $78.00 (8.14% Loss)

What I’m buying

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

Today’s updates

Market Snapshot 12-21-15

Not much movement in the markets today with many of the markets staying well within their 7 Day ATR %. UGAZ (Natural Gas) saw a huge spike today which could have been a calculated short squeeze, but one day does not make a reversal, but I’ll watch it closely for signs of a reversal or a possible entry to play it to the downside. It’s difficult to gauge at these levels with price so far in decline. With Thursday being a limited trading day on the US market and Friday being closed, I wouldn’t expect many of the equity based ETF’s to move much, however Crude Oil, Natural Gas, and Gold/Gold Miners will be fair game and could be worth holding over the extended market closure should a strong enough setup appear.

EWJ (Non Leveraged Japan) stopped out @ $12.00 for a 2.44% Loss

The large gap down after I entered the trade was the early signal this wasn’t going to work out. The market did close at $12.05, .05 above my stop level, but now that I’m out, I will just wait to see if it can break $12.30 again for a possible resumption of the uptrend.

EWJ 12-21-15

EDC (Emerging Markets) short order missed by .14 cents today as today’s high was $11.86 and my short limit order was for $12.00. We are still within the trend lines, but after an initial drop it had a strong recovery intraday turning PPO positive again. I have been playing conservative in my trades and with PPO being positive now, I will hold off trying to re-enter this trade.

EDC 12-21-15

What I’m Buying

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

DRN (Real Estate) had a nice spike higher and finished lower for the day. I am going to see if I can play a trade off the previous resistance level of $75.00 and buy into DRV (Inverse Real Estate). DRN (Real Estate) isn’t a very high volume ETF so I won’t be able to short it due to limited availability of shares to borrow.

Chart of DRN (Real Estate)

DRN 12-21-15

My order for tomorrow in DRV (Inverse Real Estate)

DRV 12-21-15


What I’m selling

Sell SPXL (S&P 500) Limit @ $92.50 (7.56% Profit)
Sell SPXL (S&P 500) Stop @ $78.00 (9.30% Loss)

I was fortunately to get back a couple of percentage points in my position, but it wasn’t high enough to bump up my stop loss. As you can see from the chart below I came very close to being stopped out today. Another strong day tomorrow and I can start to move up my stop loss to it’s original stop position of $81.50 hopefully. Sometimes you get into this tricky spot and you have to continue to give it room if you have any hopes of climbing back. SOXL (US Semi Conductors) had a strong day today and XIV (Inverse VIX) were also higher. This bodes well for US markets in general so I’m crossing my fingers for another strong day tomorrow as well.

SPXL 12-21-15