Market Update

I had a very busy day today so it is just now that I am getting some time to add today's update. I didn't even have a chance to drink coffee.. anyway, the market went up but not by all that much so there seems to be this wait and see mood. However, the pattern looks bullish as there seems to be a series of nested 1-2s and perhaps the jobs reports tomorrow will give the market enough fuel to rally towards 1423 again. It's still not clear to me if this wave will end up being corrective or impulsive but we should get an idea tomorrow or early next week. China and HSI continue to rally and depending on what happens here in the US, I might hold on for a bit longer. It is starting to look tempting to start locking in some profits but I'll be patient.

Also, today was one of those days where I am right on the market but wrong on the trade. The market went up but the XIV I bought fell 1%, so I am hoping a stronger rally will yield some profit so I can be out for the weekend.

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 1000 XIV @18.80 as of 12/05/2012 on margin - 
• 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.