February 13, 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 BRKB?????????????????????????? ????????? 149.67????????? 149.00 Close
LONG DXJ??????????????????????????? ????? 50.38??????????? 49.90 Close
LONG TLT??????????????????????????? ???? 129.40???????? 128.70 Close
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Today's Working Orders
Stocks...
IBB...322.50 is the closing hurdle. Sustained price action over this level is needed for another leg higher.
AGN & ACT are two of the best looking Pharma names. Many of the names are in profit taking mode. These two have positive patterns.
GILD...has rallied 5% from the 200 DMA after a disappointing earnings.
It now needs price action over 101.50 resistance and a close over 102.60 to start a fresh leg up.
DIS...this is getting rich as well, despite the fact that I'm looking for a move to near 112. I'm a buyer @ 97.50.
VIX... Looking at the board right now it looks like the VIX will test the 200 DMA @ 14.62.
Since we've reduced our Long exposure I'm not really interested in this trade.
I've had a good run and I'm not going to get creative.
If you're running a big Long only book, it's not the worst idea for some weekend insurance.
The calls should be trading around a dollar. I'm not crazy about the trade since the VIX options are monthly not weekly expiration's and the March is too expensive.
I'm a reluctant Bull at these levels. I saw the typo in the VIX Thanks. These Calls expire Wednesday 2/18/15.
Bonds ...
30 Yr. Bonds...(H) need price action and a close over 146.22 (50 DMA) for a rally.
Yields up...Banks stocks up.
FX...
GBP/JPY...hit resistance @ 184.07 and is now in retrace mode. 181.80-182.30 is the support zone. This is a must hold level closing level to keep the board Risk On.
Commodities...
OIL...52.75 is 50 DMA resistance. We traded the 50 DMA in July 2014 when the Oil was trading over 97 and again on Monday 2/9/15 @ 54. Spending anytime above this Mov Avg will cause the shorts to vomit.
Look for opportunity in OXY,XOM,COP & DIG. The patterns look constructive with relatively neutral RSI's.
General Comments or Valuable Insight
As traders saw the Bond move losing downside momentum, a lot of money fled the Long dollar trade yesterday.
This has been a one way train since July. Time to take a step back and let it breathe.
The easy money has been made.
Many individual stocks have had massive moves over the past couple of days, so I think it is natural to see some price consolidation.
At the very least I'm looking for some money to just go to the sidelines for the long weekend which should help out the TLT position.
We took money off the table yesterday, closing out AAPL and ZTS.
I'm still in love with all things Apple, I just think the board is in need of a breather.
Traders will be out the door early for the long weekend.
It will be just you and the bots.
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For Glossary of terms and abbreviations click here.
