December 19, 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
TBT?????? Long??? Dec 81?? Calls .43
USH???? Long??? Jan 4????? Puts 17.
......................................................................................................................
Today's Working Orders
Sell?AAPL @?518 stop close GTC?
Sell Yen Futures @ 96.80 GTC
Buy USD/JPY @ 103.25 GTC
We're going to wait for the TBT & 30 yr. Futures to open..
Sell the remainder of your options positions as best you can.
..................................................................................................................................
Stocks...
FXI..38.37 is the Hold level. Closes over 39 will lead to a new leg up.
DXJ...50.20 is the weekly ORH#. You'll have to give this to over 50.50? close
to be sure it will go this time.
EWG...needs over 30.45 close for a couple of days to confirm more upside.
DAX...9264 is the closing level that needs to maintain over for a test of the year high.
SSO...50.20 is the weekly ORH#. A weekly close over this level should lead to another 10% in this ETF
SPU's...1811.50 is the weekly continuation ORH#. The short swing count is now close to 1850.
?
Bonds...
30 yr. (Mar)...the? Bonds will spend the next week and a half trying to rally a point to a point and a half.
Volatility will be getting crushed in the options expiring next week. We'll be working our way out of the options position just after the opening today.
We bought these as a lotto ticket that went our way initially.
We took 1/2 off to pay for the trade to see if we could hit a home run.
This will be a small ding of a few ticks.
FX...
USD/JPY...Buy Dollars against 103.25/sell the Yen @ 96.85
?
Commodities...
Gold...the macro sell stops are under 1180. The longer term downside tgt is the 1080 level.
OIL is up $6 dollars on the year. Those looking to short this should be very patient. With year end around the corner it doesn't seem worth it.
Having said that, those wishing to give it a go should not risk more than 98.20 in the Futures.
General Comments orValuable Insight
December Treasury Futures and Equity Indices stop trading on the close today. 3:15 CDT
In case you couldn't tell the bottom is in for the rest of the year in the Equity Indices.
With expiration today and the volume of buying yesterday, expect to see some back and fill for a day or so before year end window dressing.
We originally caught this swing in the Equity Indices in November. Yesterday's swing was a mirror image in 2 hours.
The rest of the year will be fairly straightforward.?
If an instrument is up on the year don't sell it.
An instrument such as Gold, down $440 on the year, Don't buy it unless you're covering shorts.
Yen is down 30%, it's not finished going down.
Markets tend to maintain direction into year end.
Short Term View...
Keep trading to make money. The opportunity will be in individual names.
Less is more this time of year.?
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.
For Glossary of terms and abbreviations click here.