August 20, 2013 - 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
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Long QID??????????????????????? ? ??? 21.06??????????? 20.28??????? 21.90
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Stocks..
NIkkei... is rolling over on the weekly charts
Spu...the daily charts formed a head & shoulders top last week that have investors looking to sell the big rallies.
Bonds...
30 yr...is having an oversold bounce. The question now is high how. 131.25 is the first descent resistance level. Then it can move a point at a time to the upside.
FX...
EUR/AUD...put in an ORH pattern yesterday with the close above 146.30. These patterns are typically price positive and you're seeing that follow through into today's session. 148.19 is closing resistance.
AUD/USD...put in an ORL pattern which is the flip side of the pattern above, eliciting renewed selling of the Aussie.
Euro...has rallied to resistance @ 134.05. Sustaining over and closing over this level is needed for another up move.
Commodities...
Silver & Gold both hit support last night as the European session saw profit taking in the Short Euro/Long Metals trade.
General Comments or Valuable Insight
The Spu's are getting oversold on the daily charts with the Bonds having a good oversold bounce. Trade your time frames today.
Just like yesterday things can change after the European session.
The one thing that struck me yesterday was the Vix not breaking anywhere when the equities tried to rally early. Keep an eye on this today.
Vix closed over it's 50 & 200 day mvg averages yesterday which is price positive. 16 is big resistance in the cash the first time up which should stop any break in the Equity Indices in the short term.
It's summer time trading and the robots are in control.
Short Term View...
Trade instruments off their own technical's
Time Frame Trading.
The trade will be all over the place going into tomorrow.
We put on the double short Nasd yesterday strictly off a technical pattern just to see if the profit taking could turn into a more serious correction.
We're willing to give this into the Fed minutes tomorrow to see if we get a failed mid-week high.
It's still a Bull market, albeit a tired Bull. Sell rallies not breaks.?
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