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.
462.94 -463.33 is where the 50 day and 200 day mvg avg’s converge.
Everyone will be eyeballing this # set.
Your intra day tolerance should be adjusted so as not to get ticked out on a flush into the mvg avg’s. Use a 460.50 stop.
This is the Hold or no hold level.
By Not holding this level AAPL could see a dump to the low 450’s.
Trade accordingly…we’ve picked a low extreme on a mid-week shuffle with defined risk.
A spike intra day into these mvg avg’s followed by a move and a close back above 467 would signal a Bear Trap and a trad able low.
Long/Short algos will be running wild all day with sector rotation.
For Glossary of terms and abbreviations click here.