Friday, February 12, 2016

Trader's Tax deduction rules

Something I found on MSN, pertaining to trading and tax rules. (below is an excerpt from the article that is related to trading rules).

"Those who trade in securities have significant tax advantages compared with investors. The expenses of traders are fully deductible and are reported on Schedule C (investors report their expenses as a miscellaneous itemized deduction on Schedule A, subject to an offset of 2% of adjusted gross income), and traders’ profits are exempt from self-employment tax. Losses of traders who make a special section 475(f) election are fully deductible and are treated as ordinary losses that aren’t subject to the $3,000 cap on capital losses. And there are other tax benefits.
But to qualify as a trader, you must buy and sell securities frequently and look to make money on short-term swings in prices. And the trading activities must be continuous. This is different from an investor, who profits mainly on long-term appreciation and dividends. Investors hold their securities for longer periods and sell much less often than traders.
The IRS knows that many filers who report trading losses or expenses on Schedule C are actually investors. So it’s pulling returns and checking to see that the taxpayer meets all of the rules to qualify as a bona fide trader"

Here is the link to the msn article:

Thursday, February 11, 2016

We should see a bounce from this level

As contrary to my earlier belief that we are moving down to the 170 level, today SPY touched the Jan 20th lows of 181.4 and bounced back from there. Now it will be interesting to see if this up move lasts for a few days and overcome the resistances at 187, 190, 194 and 200. I think we might see a move to the 187 level and then back down further to new lows but it is just my guess.

Monday, February 8, 2016

Should we see a final push lower now

SPY fell below a major support of 187 today. Sometime this week I think we could see a re-test of the Jan lows of 181 and below is a support zone near 174. With VIX at the elevated levels (currently @26) market volatility is going to be high and market moves will be erratic and large until volatility dies down.

Wednesday, February 3, 2016

Employment numbers coming out this FRIDAY, FEB 05

These two important reports coming out on Friday will move the markets one way or the other. This time these numbers are suppose to be watched more closely then in the previous months.

13:30 USD Nonfarm Payrolls (Jan)

13:30 USD Unemployment Rate (Jan)3

     (Consensus  5% Previous 5%)

Tuesday, February 2, 2016

The VIX Key

Different levels to watch for VIX. Something I found necessary to watch while I am trading.

Monday, February 1, 2016

US oil drillers to report billions in 2015 losses

American oil and gas producers are expected to announce 2015 losses totaling over $15 billion:

Hess Corporation reported a net loss of $3 billion
Murphy Oil Corporation lost $2.27 billion
Chevron lost $588 million

Sunday, January 31, 2016

SPY breakout on Friday

It looks like a clear breakout this last Friday... the last trading session of the month!