It's been my understanding that 1256 is for futures trades exclusively. I have trader status but file 1256 as I only trade futures. I would ask the question of a trader tax pro like Bob Green.
I used to trade with a woman by the name of Victoria Pearson. She was an associate of Raschke. She used to say "support and resistance were meant to be broken". When the bear comes out of his cave and hungry, support becomes very tenuous.
Yep, any noobs or journeymen need to just watch this PA, It's not an environment to participate in unless you are fast, good, experienced and disciplined. I got gutted in 2000 trying to trade that. Thought I knew what I was doing...ugh.