Wall Street We Got a Problem

Junk bonds are performing at nearly the same levels at the depth of the 2008 financial crisis, and yet SPY is near highs.  I can't even imagine what junk will look like when we go into a recession.  It is likely these securities will merge.  My view is SPY will reach down more than JNK will come up.

New Trades

Yesterday, we were stopped out of our AAPL short at 108, from 107.62.  But we opened a 104 January put at $.60.  I expect great things from this position

We also flipped from short to long on closing XIV at $27 for a $1.28 gain, and buying VXX 19 calls for Jan week 2, at $.83.

We also closed our SPY calls for a 33% gain on a overnight trade.

As I expect weakness into the new year, I am closing my BIS short signal this morning.  Those were 28 puts for January.  Small gain is expected.

I'll post more trades and signals on Twitter as they come up.  You can realize great profits at a low cost by signing up.  Enjoy.

Quick Update

Just wanted to update everyone on open signals.

BIS sell is still intact and profitable
AAPL sell is still intact and profitable
SPY buy is still intact and profitable
XIV/VXX Buy and sell respectively is still intact and profitable.

Yesterday I called for a bottom at 2032, on ES and we hit 2035, and my ES signal reversed at 2042 to a buy and we bought SPY 206 calls, after closing SPY 203.50 puts at the 2040 area.

For today, we are already at the money and ES nearly breached 2060.  Watching to see if the pivot point (5 minute) holds (looks likely) and ride the price higher into tomorrow.  The 60 minute is sporting a bull flag.  Resolution is 2065 area.  High value area is 2098.

ES 2032

New Year Resolutions

AAPL Sauce?

AAPL tried to push back into it's volume range for the past month, but failed.  Now a bear flag is forming.  I will reverse short below 107.64 area next week if the Santa rally fails to materialize.

AAPL of my Eye

AAPL showed up big on the Buying on weakness charts on Friday.  It also flashed a buy signal for me on the hourly setting, so am looking at a trade above $106.33, with a stop at 103.19.

VXX Reversal

I got a VXX sell signal on Friday.  If you want to be conservative wait for it to hit 20.89, or a value area of $24 .  For XIV, I already recommended a buy, but if you are conservative wait for it to come into volume value area, (Green arrow, blue if you want to catch a deeper low.)

Gap Fill on Deck

By now, the reports on the end of the world as we know it are circulating the Blogosphere, and if you are a long term holder of equities I say it is and been time to lighten up, and go long, long bonds.  But if you are a trader, we are now very oversold, with a stretched  price to the moving averages, and a gap fill looming.

If Monday fills that gap, my view is we rally into year end.  My preference will be to sell volatility.

Just Trust the Signal

Computer code doesn't waffle nor rationalize.  This signal is a consistent money maker if you ignore all of the noise and take the trade.  Invest $12.50 and give it a spin for a month.  Might be the best lunch you ever bought yourself.

WOW

This chart needs no further commentary.  SPY vs. JNK

New Automated Signal

This is my bread and butter trade, and I finally automated generated a signal for it.

I automated an hourly VXX signal. 10 for the last 11 buying puts and calls. Buy 10 calls on the buy, buying 30-50 puts on the sell. I buy just outside the money, and always at least one week out and no more than two. 
 
Another winner this morning. http://bobsstocksignals.blogspot.com/   sign up on the right.
 
Comes automatically to your phone via Twitter. Computer genrated signal

Recap and Morning Update

We went in to yesterday short NADEX, GLD and Volatility.  All three trades paid off for us.  Then we bought NADEX below the S1, and that trade was stopped out for a loss as the market sank into the close.  Likely due to the shooting news.

But the market gave me a clue that I ignored.  When the market is in a downtrend, and you get a counter move from 1 to 1:30 that is moving higher, 1:30 usually will market the highs for the rest of the day.  I should have closed my NADEX long at that point and waited for a higher high.

But the end of the day afforded me an opportunity to short vol again with VXX puts which I did at 18.62 area, which are likely to pay off nicely this morning.

For today, because of the news today and tomorrow, I am unsure of direction, but premarket suggests a green day.  I bought NADEX 2075 for $70 yesterday (I did not post it as it was too speculative to share).  I will let the market open and let the market commit before I add anymore to NADEX.

For other trades everything looks like a mixed bag so nothing jumps out at me. Starting tomorrow and for at least the next week, the market is seasonally weak, so will watch for some short set ups, and TVIX to purchase.

Morning Update

Going into the day I am short GLD with December Week 2 puts as there are two high probability short days on gold this week.  The new COT week sell off on Wednesday morning, and the Thursday before NFP selloff.  Plus there was a gap fill failure and an hourly sell signal.  We'll see what today brings.

For ES I am flat, and won't do too much until Yellen does her speech.  I think we hit the high for the week, and in fact the high until at least the 18th after today.

For XIV, back in long again.  The gins have been small the last two weeks but gains nonetheless.  My stop is now 30.84, locking in at least $.40 profit from my $30.44 entry yesterday.  Remeber when you get a UVXY sell signal, you can buy puts on UVXY, and VXX, and calls on SVXY.  You can also do credit spreads, and / or buy XIV or SVXY.

IWM is getting toppy and watching for a short trade there.

NADEX, I have a 2112 short on for end of the day, and will look to put a long trade on after the market opens.

Daily Recap

I  took a still with some notes, on the trades today.  I posted everything live on my private Twitter feed and also some of these trades on www.slopeofhope.com, for free.  I also recorded a video but can't it to upload.

If you want real time signals on ES, NADEX, and volatility you can sign up on the right.  Only $12.50/month.