February 11, 2015 - 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 ZIOP?????????????????????????? ? ? ?? 7.99??????????? 8.00 Close
LONG ?AAPL????????????????????????? ?????????? 116.
LONG BRKB?????????????????????????? ????????? 149.67????????? 149.00 Close
LONG DXJ??????????????????????????? ????? 50.38??????????? 49.90 Close
LONG ZTS 46 Call exp 2/13/15?????????? .15
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Today's Working Orders
You know the drill
ZTS...SELL 7 Calls if 46 trades after earnings on the NY opening.
BUY 15 VIX 16 2/18/16 Calls @ the market when the Vix cash trades 14.90.
This is a situational trade. You or your broker will have to be paying attention.
Stocks...
SPU's...the mid to high 2060's will remain resistance and the closing upside pivot.
2039 is 50 DMA support.
VIX...14.85-59 is major support. I'm buying the 16? Calls Expiring 2/18/15 if we print into this level. Size matters with this strategy.
The goal is to hedge up half your long portfolio. I'm hoping these will be trading around a dollar or lower.
For this to happen you need a good spike up in the Indices, which will crush volatility.
This is the time to buy Flood Insurance "John Thomas".
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Bonds ...
No Change...
30 Yr. Bonds...(M) 165.00 was support that is now resistance and the upside momentum #. Below, there is room for a move to around 161.27.
30 Yr. Bonds...(H) is a tale of two charts. The daily shows the 50 DMA @ 146.14, however the continuation shows 146.29 as it's 50 DMA.
Both #'s can bounce the first time down. 146.29 is more important to me on a closing basis,for this would leave way to a test of 145.00.
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FX...
Follow the Bonds...More weakness from current levels will move the dollar higher against the Euro & Yen.
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Commodities...
GOLD...1228.20 is mvg avg support.
General Comments or Valuable Insight
It's all about the mid-week shuffle.
For the Bulls, they need to see a couple of closes over the upper 1260's in the Spu's.
For the Bears, they need to see at least an attempt at a new high, if not a new high, followed by a big reversal lower.
Time Frames today....going into London's close you'll start to see Creek comments hitting the tape. This is when volatility will increase, during the lowest volume part of our day.
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For Medium Term Outlook click here.
For Glossary of terms and abbreviations click here.
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