December 27, 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
????????????????????????????????? ? ?? ?? Entry????????????????????? Stop?????????????????????TGT

APPL Long????????????? ? ?? ????? 520.70????????????????????? 518 ?????????????????????600
SSO Long?????????????????? ? ? ?? ? 98 ?????????????????????????????????????? ? ? ? ? ? ? ? 104
SFH Short????????????????????????? 111.76????????????????????? 112.25???????????? stopped out
USH Short ??????????????????? ? ?? 130.08???????????????????? 128.29
DXJ? Long? Jan 14 52 Call ???? .43

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Today's Working Orders

Sell? DXJ Long Jan 14 52 Call at your entry level

?Buy USH@ 128.03 to cover shorts

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Stocks..

AMZN...looks to have more to go on the upside, possibly as high as 420.

This is another momentum instrument that can close on or close to it's highs for the year.

It's up 25% this qtr alone. Prudence would dictate using a trailing stop of 393 close.

DXJ...options strikes are quoted on the even and half dollars, not at .38 or .88 cents like some of us are seeing.

The long call trade I made in the DXJ options is difficult to track given the quotes do not seem to be correct.

My outlook remains as stated yesterday, however we're going sell those calls at breakeven. (where you entered).

30 Bonds...

30 yr. (Mar)...as long as they stay below yesterday's high of 128.25 they have farther to go on the downside.

FX...

EUR/AUD...minimally, look for a test of 155.79? the year high.

Commodities...

Gold... can see profit taking above 1420.

General Comments or Valuable Insight

We were stopped out of the Short Swiss last night.(Long USD/CHF).

While I think this is year end marking of the crosses against the Yen. Long everything/Short yen.....I'm taking my lumps and leaving the currencies alone for a while.

I'm not a fan of ETF's in the currencies unless you're doing spreads.

Currencies are an international 24 hour market that has to be traded on a 24 hour basis.

Last night illustrated the reason why in the Swiss. If you can't leave a resting order to trade on a 24 hour basis, your risk controls can rapidly get away from you.

It's never pleasant to make a boatload in one market (30 yr. Bonds) and give it all back in another.

Markets will remain extremely thin!

Instruments tend to travel in the direction they've been moving into year end.

This is exactly what they are doing!

Short Term View...

Keep trading to make money. The opportunity will be in individual names.

Individual stocks look to be an easier read based off their own technical s.

We're looking for the Equity Indices to rally through the first week of the year.

For Glossary of terms and abbreviations click here.

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