February 21, 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
USO PUT Long 28 FEB? 36.50???????????????????????????? 0.26
Orders are "stop on close" unless stated otherwise
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Today's Working Orders
Sell 25 Contracts... USO Puts 28 FEB 36.50 @ 0.57 cents
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Stocks...
Nasd 100...3633 is closing support. NASDAQ leads, this is where all the social enabling and healthcare biotech names are.
Spu's... are once again higher on the week and flirting with unchanged on the year. The later in the day it gets without backing off, the higher the indices can get marked up on the close.
EWA...has a good chart pattern. Two closes over 25.40 will get me long.
Bonds...
Italian 10 yr...118.77 is support.
FX...
EUR/USD... 137.75-90 is resistance and the upside closing pivot.
AUD/JPY...the rsi's are neutral. This cross is mulling around 92.10-20, where the 50 & 200 day mvg avg's converge. This cross has had a gravitational pull to this level over the past couple of weeks.
By remaining under 91.90 the Bears will appear to have won.
The upside breakout is above 92.85 close
Commodities...
OIL...I'm looking initially for the mid 101's in Crude. Plan on exiting (Selling) half the USO puts on a print into the 101.60 area.
We're leaving a resting order to sell in the daily working orders for those not in front of a screen all day.
103 is resistance. 103.45 is the upside pivot. While Oil is very overbought short term, price action over this level could lead to a test of near 105 before exhausting.
I like to sleep at night so this led me to the USO put strategy.
Your downside is fixed and you have a week for this to play out.
Natgas...for all those that wish to pick a top, Don't think about it until next wed.
General Comments or Valuable Insight
Equity options expire today.
Yesterday's rally was in part due to traders buying up cheap lottery tickets (Calls) in a variety of names for today's delivery.
Some FB strikes quadrupled from the NYSE opening.
A lot of the afternoon will be option related games playing out.
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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