Wednesday, November 21, 2012

Market Update

The market made a higher high today and the short term trend has turned bullish. The last time there was a change in trend was almost a month ago on 10/23 at 1445, so we'll see how long the market will trade above the trend average. Today's action could be counted as part of the W4, and perhaps the market will be ready to put in the 5th leg after the holidays. I was hoping for a zig zag to test the trend average but we'll just have to wait and see, the bottom line is we should see higher highs for this bullish wave before a substantial pullback.

I stopped out of VXX as a new high was made, so I am again out of the US market completely. And I'll jump back in should the 5th wave materialize or if the TA gets tested. Year end is coming so a big rally might be on the horizon if all the bearish trends are able to be reversed.

Happy Thanksgiving!

Main S&P 500 Trends 

Short Term Trend = Bullish
Medium Term Trend = Bearish
Long Term Trend = Bullish

Long Term Portfolio
  • 100% Long in Red Chips traded in HSI (Mainland China stocks traded in Hong Kong).

Short Term Trading Strategy 
  • Bought 500 VXX @31.54 on 11/20/2012 - Stopped out @31.11 on 11/21/2012. = -0.43
  • Closed position 500 @ 18.26 on 11/20/2012. Sold 500 @ 17.79, raised stop to break even on the other 500 as of 11/19/2012. Bought 1000 XIV @15.98 as of 11/15/2012 on margin - position trade cost improvement 4 cents, so net cost $15.94 as of 11/16/2012 - Profit = $2.05 
  • Bought 1000 XIV @16.88 as of 11/14/2012 on margin - Stopped out @ 16.66 on 11/14/2012. = -0.22
  • Bought 1000 XIV @15.67 as of 11/08/2012 on margin - sold 1000 XIV @ 16.25 on 11/12/2012 = +0.58
  • Margin positions in Gold initiated 11/06/2012.

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