December 9, 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?????????? 14.00 Close
LONG? JJG?????????????????????????????????????????? 38.21
LONG SLV 12 DEC 14 16.50 Call???? .16
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Today's Working Orders
No working orders.
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Stocks...
Spu's...need to close back over 2064 resistance to entice me in.
IWM...needs back over 116.80 close to negate yesterday's ORL pattern.
114.25 is support @ the 200 DMA.
Ford...closing today below 15.40, 50 DMA, will have me exit this trade.
VIX...closed back above it's 200 DMA yesterday. The 50 DMA @ 15.57 is the next closing resistance level with resting buy stops above 15.74.
Bonds ...
Bund ...need a close below 152.45 to turn down.
Italian Bonds...133.90 is today's support and downside closing momentum level.
FX...
USD/JPY... Sustained price action under 119.50 ( over 83.68 Futures) is needed for further profit taking. This level was touched last night.
Traders who are involved should use this level as a trailing stop for shorts.
EURO...needs above 124.50 resistance for a rally.
Commodities...
OIL...needs sustained price action over 65.55 to go bottom fishing in the Energy names.
JJG... yesterday this closed lower on the week. I won't be holding onto this position either without some early constructive price action.
General Comments or Valuable Insight
Let the board set up again today before you play.
It's going to be a sector rotation game for the next week.
Let the market come to you if you're looking to own anything into next year.
You can tell by the price action that everyone is trading just a few names.
Yesterday it was healthcare where some names had early 8% moves back and forth.
This makes it an opening range momentum trade.
We're lower on the week and the month in all the major U.S. Equity Indices.
The Midcap & Russell look particularly vulnerable after putting in an ORL day.
Profit taking could go on into Thursday.
For Medium Term Outlook click here.
For Glossary of terms and abbreviations click here.