Close Under 50 DMA

Before I go on what happened in the markets today, I wanted to post this link to sign a petition for gun control.

Gun Control Petition

I actually own guns and I think people should have the choice to have guns to defend their properties. However, with one idiot going crazy every other week, how many more people have to die before we come to our senses on this? whatever we have in place is obviously not working so I hope there will be more checks or restrictions on buying guns.

Ok.. so the market decided to invalidate the count and trash the perfect count. So I labeled it as a completed wave structure and from the 1438 peak I see 5 waves down to the low today. Which wave this is will be decided early next week on the bullish wave. A very bullish wave and it will be a W3, a choppy wave that gets to the Fib retracement area or that trades sideways will signal more downside ahead. The market closed under the 50 DMA and the Trend Average, so this could still be considered a test. But substantial downside changes the bullish environment. China and HSI rallies have had not effect in the US, last night China rallied 4.3% and that helped my FXI but I am holding on to those until I see some sort of signal of a top.

Today I sold the XIV for coffee money and bought AAPL..I couldn't resist the risk/reward on Apple so I bought a few shares to play the bounce/rally.

Have a Good Weekend and if you agree on a change of gun laws, please sign the petition.. thanks.

Main S&P 500 Trends

Short Term Trend = Bullish

Medium Term Trend = Neutral Leaning Bullish (change of trend imminent if market remains above the TA)

Long Term Trend = Bullish

Long Term Portfolio

• 100% Long in Red Chips traded in HSI (Mainland China stocks traded in Hong Kong) since September 2012. Only position trading 30-40% of portfolio for cost improvement.

Short Term Margin Trading Strategy 

• Bought 30 AAPL @ $509.50 as of 12/14/2012 on margin -
• Bought 1000 XIV @18.62 as of 12/13/2012 on margin - Closed @18.70 on 12/14/2012. = +0.08
• Bought 1000 XIV @18.80 as of 12/05/2012 on margin - Closed @18.88 on 12/07/2012. = +0.08
• Bought 1000 XIV @18.41 as of 12/04/2012 on margin - Closed @18.63 on 12/05/2012. = +0.22
• Bought 500 VXX @29.23 on 12/03/2012 - Closed @30.12 on 12/03/2012. = +0.89
• Bought 500 VXX @30.77 on 11/23/2012 - Closed @29..68 on 11/27/2012. = -1.09
• 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.

Net Profit since 11/08/2012 on open and closed short term positions = $2,475*

* Margin position is usually $15-20k

* Margin position in gold is $4k