December 6, 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??????????????????? 77.42
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Today's Working Orders
Sell?AAPL?@?"559 stop OCO 581?GTC? 1/2?remaining position
Sell?AAPL @?518 stop GTC? 1/2?remaining position
OCO...One Cancels the Other
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Stocks...
Spu's...I have an interest @ buying 1726-30's.
The big game is in 2 weeks as 2014 will begin to set up.
I'll pass on the early action, however if the Spu's hold 1785 after the NYSE opening, you can buy dips against this level with a couple of point stop.
SSO...97 is resistance...94.80 is support. This instrument needs a close over or under for a new signal.
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Bonds...
30 Yr. Bonds...The continuation macro sell stops are @ 129.25 DEC
It's called a continuation chart folks.
A continuation chart will give you a much better perspective than looking at a March only chart with incomplete data.
Those of you who are actively trading the March the spread is app -48 ticks or 1 1/2 points.
FX...
GBP/JPY...163.90-164.10 is the lowest risk level to get this cross back on from the long side.
GBP/USD...look for Sterling to hold an initial break just above last years close of 162.50.
USD/JPY...101.18 (98.80 Futures) is first Yen Resistance. Between here and 100.50 (99.50 Futures) is the area to look to sell the Yen again.
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Commodities...
Gold...needs above 1260 to rally.
Small qtrly sell stops are @1206.90.
1179.40, the June low, is the next area of interest.
There will be resting sell stops below and of course this is where you should be aware of a possible Bear trap or a double bottom.
General Comments orValuable Insight
Today could shape up to be one of the more unrewarding days of the year to trade.
I have absolutely no interest to get involved in a rigged game for the HFT boys.
After the first hour of trading today most of the world will pack up their bags for the year waiting for bonus time, just counting the days for that bonus check to clear.
I'm going to toot my own horn, something I'm generally loathe to do.
The Apple trade alone is up over 10% if you just bought the stock.
Options traders are up close to 470% on half the position, and if you listened "you already booked 400% on the first half"
That trade alone made you more money than most managers who are trying to give you a low beta 10-15% annualized return.
You get the picture... I could care less what happens for the next week and a half when all eyes will again turn to the Fed.
Volumes will be extremely low and price action will tend to get exaggerated.
Every genius who hasn't made a fortune this year will be looking to do it in the next two weeks.
Short Term View...
Keep trading to make money. The opportunity will be in individual names.
Less is more this time of year. Be patient, if you miss something it's much better than taking it in the shorts!
Individual stocks look to be an easier read based off their own technical s. The Equity Indices seem stretched at these levels.
Go with the flow. Use the 9/30/13 ( September 30th) closes as your macro pivots. Trade the opening ranges and early time frames.
Your short term pivots are Friday's closes unless stated.
Just ask yourself..is it trading higher or lower on the month?
For Glossary of terms and abbreviations click here.