December 11, 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??Ford (F)???????????????????????????????????? 14.19?????????? 14.00 Close
LONG? JJG?????????????????????????????????????????? 38.21
LONG SLV 12 DEC 14 16.50 Call???? .16
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Today's Working Orders
No working orders.
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Stocks...
Spu's...2022.50 in the Mini's and 2012 in the Pit contract will be pivotal into Month end. They are this qtr's ORH #s.
Yesterday's low was either the low for the rest of the week, and most likely the year, or
they are going to put the hurt on a lot of under preforming funds and drive them out of business before year end.
After all said and done the Spu's are relatively unchanged for the past 11 weeks of trading.
EWW... OIL sensitive.
DIG...macro sell stops are @ 46.60 the yearly ORL #.
XLE...macro sell stops are @ 72.00 the yearly ORL #.
Bonds ...
FX...
AUD/USD...83.90 is resistance and the upside closing pivot.
Closing below 82.90 leaves way for lower.
AUD/NZD...Long Iron Ore/Short Sheep. This cross is getting to the lower end of a multi decade range.
Buy this spread @ 100 if it ever gets there, with a 50 pip stop.
Commodities...
OIL... 60.30 , the 200 month mvg avg, is pausing the Oil slide.
Next week will be the set up week for another trade.
Soybeans...with a couple of closes above 10.57 the Beans can take the lead for another rally to just over $11.
General Comments or Valuable Insight
A picture is worth a thousand words. Time to take a 10K foot view of the Currencies and related Oil plays.
This piece is about Oil,matching up instruments looking for a possible trad able low, and being a prepared investor with a preferred shopping list in hand.
The Mexican Peso and the Nok seem to be getting close to major resistance against the Dollar. Both have imploded with the price of oil.
The Oil Majors do not show a good defined entry level. Only price action back above the ORL levels would confirm a low.
Some of the MLP's are getting to attractive levels for bottom fishing if the Oil would cooperate.
When the Oil bottoms, I'm looking for these names to all turn together.
Go into it looking at it as an opportunistic contra trend trade in a bombed out sector.
If it turns into something more..great.
This could take into late next week to play out. They'll either find footing or keep on going into year end and possibly beyond.
The charts have very different set ups, meaning patience is required.
Currencies and MLP's are over stretched with the Oil majors looking like there is no bottom in site.
Better to nibble at a level with definable downside risk, than to go balls to the wall and get run over.
All these charts are Oil sensitive.
Screw Vlad, I purposely didn't include the RSX or the Rouble, but you get the drift.?Russia will be the same trade and bounce as well.
?WTI
SPU.. MINI
SPU... PIT?
EWW...Mexico
USD/MXN ....Mexican Peso ? ?
USD/NOK...Norwegian Krona
BPT... ?Prudhoe Bay Trust ?
OXY
XOM
Chevron?
For Medium Term Outlook click here.
For Glossary of terms and abbreviations click here.
