August 7, 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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Short Euro ? ? ? ? ? ? ? ? ? ? ? ??? 133.40????? 133.40 ? ? ??
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Stocks..
Dax...put in an ORL day yesterday, as well as closing below the 18 day mvg avg.
You would expect downside follow through early. Time will tell if the pattern is going to follow through to the downside.
EWW...69.50-55 is resistance and the closing upside pivot in Mexico.
Bonds...
FX...
AUD/JPY....we're looking for a test of the 86.40's. This is a matching Fib level on 2 different multi-year swings. Expect price rejection the first time down.
AUD/CAD...the Commonwealth spread has collapsed since April and is attempting an oversold bounce, just as the Aussie is trying to get a wiggle up off the 88.50 level.
Maintaining above 92.90-93.00 in the cross is needed for a further rebound.
This is telling you that you need to be very disciplined in being short Aussie.
Sell rallies where you can codify your risk. 90.00 is the near term resistance level.
USD/JPY...has taken out the weekly resistance @ 97.65.
96.86 is the next cash area. Futures show resistance @ 103.24 the first time up.
Closing much through this level will leave way to 95 USD/JPY
Commodities...
Gold...1264-66 is the next level down. Without price recovery back over 1280 this could maintain a downside bias for a couple of weeks.
Silver...ran the resting sell stops at 19.18. This metal needs price recovery above 19.60 to hold up.
OIL... EIA petroleum report on the calendar for today @ 9:30 CDT
General Comments or Valuable Insight
We're short the Euro and it's still the wrong way on the majority of the crosses.
Investors are still buying Euro and selling Gold and Aussie. Only against the Yen has this?been a descent short.
So far we haven't been getting any help from any of the crosses to get this short to work. It's still higher on the year against the Dollar.
Let the stop work. If Euro trades 133.40 we're done with it until late Sept.
It's the "Mid-Week Shuffle" Pay close attention to your time frames today.
You should be suspect of new lows or highs in any instrument. They can quickly turn into directional traps. Do not chase today.
Pay attention to the early capital flows out of New York to see if the Equities remain in profit taking mode going into London's close.
Short Term View...
Trade instruments off their own technical s
Time Frame Trading.
For Glossary of terms and abbreviations click here.
