While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
Long EWZ 44.76 44.00 47.10
Long Line (Sept 28 Calls) 1.30
Line…Linn Energy… Those of you that outright bought the stock should be using a 26.70 stop on close. This has yet to break out to the upside.
The daily chart turns up with a good close over 27.60 and the weekly over 28.
The first tgt is 29, where you should sell half your calls. Either side of 30 Dollars is next. Sell another 25% anywhere near this level and let the rest ride.
AAPL…is one of the better looking instruments on the board.
This has broken the most and lagged the rally. The daily,weekly monthly and qtrly charts all look good. As long as this maintains above 418 this week look for another 40-80 dollars of upside.
Spu’s…1688-90 remains short term resistance and the upside pivot.
Above, the short term swing tgt from Friday’s low is 1717.
Spu/Bonds…we’re creeping towards the 18 day mvg avg line in this spread for the first time in over a month. We mention it because it usually foreshadows significant swings in price.
Bonds…135.27 is the only # you need to know the rest of the week in the bonds.
it’s either higher or lower on the qtr. The downside is the low 131’s followed by the low 127’s.
The upside has not changed. We’ve mapped this out over the previous couple of weeks.
No change from Friday.
EUR/JPY…support levels coming down are as follows.129.60 &128.85. Closing below
128.85 could lead to another 2 figures.
AUD/JPY…90.60 will be pivotal. A close below 88.70 would lead to a big correction in this cross.
DXE…is getting oversold on the short term time frames with the daily @ the 200 day mvg avg @ 8157. This will be a rough level to get through the first time down. It will take more than one attempt to penetrate this area.
The big game is 100 points lower @ 8025-50. Im only making you aware of this since I won’t be in front of a screen the next few days.
Gold…needs over 1340 for higher. 1387-1400 is the next big tgt level above 1340.
Oil…104 is the pivotal level to remain firm over. Below, look for 102.50 and then 100.30
General Comments or Valuable Insight
The board will likely take into Wednesday to play out, which is month end, peppered with lots of data releases early and Fed minutes late.
We’ve put in the Spu/Bond charts to give you a sense of how far this spread has come.
Trade instruments that you can define your risk with tight stops.
I will not be in office or writing the rest of the week.
My father lived 95 very full years and had a peaceful end. The rest of the week will
be consumed with travel, family time and reflection on a life well lived.
If you need anything let me know early!
Short Term View…
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