December 16, 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
APPL??? Long?? ? ? ? ? ? ? ??? 520.70?????? 518?????????????? 600
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Today's Working Orders
Sell?AAPL @?518 stop close GTC?
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Stocks...
Spu's...I have an interest @ buying 1726-30's.
We hit support last night at the 50 day mvg avg "1760" and bounced hard toward 1785 resistance.
Sustained Price action above 1778 will be price positive the index.
I'm still using December #'s which is basically cash.
The March (H) is trading 6.25 points under the December.
SSO...94.84 is the level matching 1778 December S&P 500 Futures.
SSO needs price recovery and a close over this level to negate the weekly pattern, which is short term negative.
VIX...16.60-80 is resistance
EWW...maintaining and closing over 67.50 puts this back in our Buy column. Not only is this a significant daily area, it has bigger ramifications as a monthly (Yearly) closing level.
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Bonds...
30 yr. (DEC)...131.13 December is resistance and the short term upside pivot.
FX...
USD/JPY....closing under 102.35 ( Over 97.70 Futures) is needed for a further rally.
GBP/JPY...staying above 167.15 keeps the cross on positive footing.
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Commodities...
OIL...failure to sustain above 96.80 is bearish. This will be the pivotal level all day. 97.20 is short term resistance.
Gold...needs all new weakness under 1220 for another wiggle down.
General Comments orValuable Insight
Today is the qtrly Futures & Options expiration for the Yen,Euro,Swiss Franc, British Pound,Mexican Peso and the Australian Dollar @ 9:15 CDT.
The Aussie is the only currency with a meaningful forward differential which is approximately a -55 point discount to cash.
We'll be sending out a currency update later in the A.M.
December Futures Expire in the Equity Indices and the Bonds on Thursday.
This is when the December disappear from the continuation charts and the March fills in the bars.
Given all the Futures expiring this week you need to let the early price action dictate your trading and be mindful of the spreads between contract months.
Just how much downside we can see in the Equities, and conversely a rally in the Vix to the resistance area, remains to be seen.
The break could very well be over, however the bigger game is still to be played out Wed into Thursday's close.
This is not the week to press your year. Be patient and let it play out.
Short Term View...
Keep trading to make money. The opportunity will be in individual names.
Less is more this time of year. Be patient AND ONLY TRADE ON YOUR TERMS.
Individual stocks look to be an easier read based off their own technical s.
We're looking to get Long the Equity Indices on a good enough sell off into Wednesday for a trade through year end.
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