Happy New Year to all of you!
Here’s to a happy, healthy profitable year.
After some losses – and some great wins — in late 2014, we hold all open positions. Our last trade on the VXX March 32 put returned 20% and 22% in days.
And our XIV stock trade gave us a gain of 15% and 14% in just days.
While we’d like to issue more long bets at the moment, including long-term bets on the 2015 Dogs of the Dow, it’s a bit tough to make a call for upside when the markets are so toppy, post-Santa Claus Rally.
The idea that years ending in “5” are bullish holds no weight at these highs.
The Dow is challenging a double top again with reversing RSI, MACD and Williams % Range. Near term, I believe the Dow could test its 50-day average at 17,557. Failure from there sends it to its 200-day average just under 17,000.
Consider buying to open the DIA March 2015 176 put up to $5.
Shares of AT&T ( T )are also failing at prior resistance points, too. MACD, RSI, Williams % Range, and MFI are beginning to top out. I’d like to see a bullish gap refill just above $32.50 on failure at these highs.
Consider buying to open the AT&T ( T ) March 2015 33 put up to $1.45.
Let’s make 2015 our best yet. Best wishes.
Ian L. Cooper
Forgotten Profits