February 19, 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
Orders are "stop on close" unless stated otherwise
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Today's Working Orders
No working Orders
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Stocks...
Nasd 100...3633 is closing support.
Bonds...
30 yr. Bonds...put in an ORH day with a close over 133.04. This level will remain pivotal going forward. Good above/ negative below.
133.29 is the 200 mvg avg. 2 closes above this level will have me looking for 136.00 in the 30 yr.
Italian 10 yr...has been leading rates lower. The Euro has been following the easy fiscal regime in Italy.
FX...
EUR/USD... 137.75-90 is the upside closing pivot.
EUR/JPY...139.60 is today's support.
Commodities...
OIL... (CLEJ) April is now front month. The levels remain the same.
Thursday @ 1:30 CDT is the end of trading for the March contract.
I'm toying with a short in the Oil for a retrace of a few dollars, however I don't think it can put in a top until after the march contract expires.
I'll start pricing some options later in the A.M.
Precious metals...nothing has changed, levels remain the same. They need a rest from this recent rally.
General Comments or Valuable Insight
Equity traders should be viewing multi national names with heavy sales in Europe and the U.K. for they will be the ones getting the exchange rate bump, If and when the Euro can break through the upside closing pivot.
There seem to be two cross currents in the capital flows of late.
First the weakening emerging markets and local currency devaluations have kept the metals,grains and other soft commodities bid.
Despite the weather, emerging market money is seeking out dollar denominated commodities to stave off higher prices later.
Europe and the U.K. have just the opposite going on. As their currencies rally against the greenback, those commodities become cheaper.
Today is all about the Bonds and Spu/Bonds.
Strong Bonds will be reflective of a Risk Off board.
It's all about where instruments start and stop in the Mid-Week shuffle.
Focus on 3633 Nasd and the 200 day in the 30 yr. Bonds.
Price action off these levels are the key to follow through for the rally in equities.
Opening Range Time Frame Trading again today.
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 are positive Equities.
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