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.
The swing count from last qtr in the S&P 500 Futures was 1730.
We didn’t quite reach it the first time up.
After just missing the tgt, an 80 point break ensued followed by a 100 point rally to print the tgt yesterday on Futures Exp.
The attached SPU/BOND chart shows that we just retested the breakdown level from the 2007 high. This is not an insignificant #!!
The Spu’s have just spent the better part of 5 years rallying for a retest of the breakdown #.
In layman’s terms, Long only guys should be tightening up their risk profiles.
You have the potential for a good correction off this area. We have gone straight up for almost a full year.
Today’s highs in the Equity Indices will become very important hurdles over the next 5 trading days.
It’s time to be an opportunistic predator if you trade.
To quote Druckenmiller… “Trade only where you can codify your risk”.
For Glossary of terms and abbreviations click here.