December 16, 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?????????? 14.20 Intra-day
LONG? JJG?????????????????????????????????????????? 38.21?????????? 38.21 Intra-day
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Today's Working Orders
No working orders.
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Stocks...
Spu's...(H) needs to sustain above 1992 for a short covering rally.(Z)? Dec. level is 2000, they're respective 50 DMA's.
1995 is the Monthly ORL # which either month must maintain above to avoid a slide to 1945.
NASD 100...50 DMA is 4118 with 4095 First swing Fib support. 4020 is the lowest risk buy zone.
Nikkei...16,250 is the only place I'd look for a bounce.
OXY...72.42 is a level to keep an eye on. It's the Oct 2012 low, with resting sell stops below.
The entire Oil sector is massively oversold. OXY put in an ORL day yesterday which can be a bear trap given the low RSI.
Spiking or holding this level and coming back up is the type of price action that can attract bottom fishing.
CVX...the corresponding level in Chevron was 100.66, which was hit yesterday.
Bonds ...
30 Yr...there is no place else left for the money to go. Price action @ 148.00 should be monitored for a double top. There are resting buy stops above which could lead to another half to full point.
Italian Bonds...134.00 is resistance. Sustained price action above should lead to another 65 points.
FX...
USD/JPY...115.45 (86.60 Futures) is the first tgt level. With world equity markets heading south and Bond markets north (Risk Off mode), 113.50 is a real possibility (88.10 Futures)
EURO...125.50-70 is resistance and the upside closing momentum level.
GBP/USD...157.50 remains resistance and the upside closing momentum #.
156.45 is support and the downside closing momentum #.
AUD/USD...currently shows a potential double bottom @ 82 +- a few ticks on the point & figure chart. Price action and a close under this level is negative Aussie.
Rouble....hey Vlad that 17% interest rate really helped last night. All that accomplished was to give traders a better entry to sell.
Commodities...
Brent Oil...Expires today. (G) February is Front Month. There is a 16 cent premium to Feb.The spread is basically non existent at 16 cents.
Soybeans...with a couple of closes above 10.57 the Beans can take the lead for another rally to just over $11.
COPPER...tried to breach 2.95 resistance yesterday and failed miserably
General Comments or Valuable Insight
Spu's have had a big standard deviation move last week into yesterday, which is 80-100 points.
The entire board from the OIL complex, Currencies & Equity Indices are directionally challenged.
It doesn't mean the direction has to change, however you best be on your toes for potential reversals. Keep your eyes on the Bonds!
Directional change can take a couple days to play out with tomorrows FED meeting followed by qtrly Index & Option expiration at the end of the week, markets should remain volatile.
Both OXY & CVX are candidates for this.
Both have technical setups which have the potential to screw the short term directional players, however bottom fishers should treat it as a trade and not a long term investment since the semi-annual & yearly chart pattern is seriously damaged and could take months to repair the damage.
Panic is setting in this A.M.
It will be a time frame price action trade.
Euro & Suisse are being bought against Rouble,INR,SEK, Nok etc. which is also giving a bid to Gold.?
For Medium Term Outlook click here.
For Glossary of terms and abbreviations click here.