April 29, 2014 - MDT Pro Tips A.M.
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.
Current Positions
Long QQQ 2 May 85 Put????? ? ? ? ?? .30
Orders are "stop on close" unless stated otherwise
.......................................................................................
Today's Working Orders
No Working Orders
.......................................................................................
Stocks...
Spu's... price action over 1870 and closing over 1874 will run out the short sellers.
Bonds...
30 yr. Bonds... have a double top on the point & Figure charts from Friday. 133.24 is first support. A close below 133.15 is needed to turn them negative.
FX...
EUR/JPY & GBP/JPY... both put in an ORH day.
If I was forced to pick a cross to short the Yen it would be EUR/JPY.
As long as EUR/JPY holds 141.60 on a closing basis this has a chance to rally and you can measure your risk.
USD/JPY & EUR/JPY have been consolidating for 2 months. The BOJ could kick start this trade tonight.
Commodities...
OIL...100.45 is support and the closing downside pivot. Resistance starts @ 101.90.
Gold...1300 is the pivot in Gold. Weak below.
Natgas...4.80-81 is resistance and the upside pivot.
Natty has been gaining against the crude all month.
The monthly chart shows that this trend can continue, however the daily chart shows that caution is needed, for this is a level that can stall the trend.
General Comments orValuable Insight
We bought some QQQ Puts yesterday, however the idea was to get filled before they tripled so we could take some money off the table not after.
The board is clearly Risk On going into the Fed meeting and Month end.
We've been trading like this for a while, where the afternoon trade is very different than the morning.
GOOG, PCLN & IBB all spiked their respective 200 DMA's and the short route ensued.
Game Plan...I'm not going to be hanging onto these puts and watching them go to zero.
The markets either reject right in here or they keep on going.
Nasd 100 could stop in the 70's or easily rally back to 3620 again.
The idea here is to live to fight another day.
We'll make a decision closer to the NYSE opening to sell them out and look for opportunity later in the week for a trade in the 9 May or May 15
weekly options.
This market is a huge back and forth trade. As soon as the big cap names match up with the VIX targets, the Bots go the other way taking no prisoners.
It's a traders market. You have to take your money or a half an hour later it's gone.
Opening Range Time Frame Trading again today.
Short Term View...
Keep trading to make money. The opportunity will be in individual names.
Individual stocks look to be an easier read based off their own technical's.
For Medium Term Outlook click here.
?For Glossary of terms and abbreviations click here.