August 14, 2014 - MDT - Working Order Update

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.

Today's Working Orders... 8/14/14

SELL USAU (30 yr. Bond Futures) @ 140.14

??SELL 1/2 Long GBP/USD @ 167.45 GTC
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Cancel the Bond Futures Sell order for overnight trade !!

"SELL USAU (30 yr. Bond Futures) @ 140.14"

I am pulling this order until tomorrow when I'll revisit the price action.

Good Working order......

SELL 1/2 Long GBP/USD @ 167.45 GTC

?I'll monitor this later this evening and write a stop.

For those of you who need to place a stop before the close to work overnight, use 166.45 stop.

This is a cash #.

The Futures were trading at an 8-9 tick discount most of today, which has been coming in (getting smaller) with the rally in the Bonds.

?Forwards...are the interest rate differential between 2 major currencies. The vig for delivery at a?future?date.

Essentially this is a cost of carry calculation based on the two?countries interest rate differential.

I.E.: a high yielding currency like the Aussie has a bigger forward or spread from the futres to cash.

For Medium Term Outlook click here.

?For Glossary of terms and abbreviations click here.

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