February 5, 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
APPL Long????????????? ? ?? ????? 520.70
Orders are "stop on close" unless stated otherwise.
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Today's Working Orders
Sell the GILD 7 Feb 89 Calls @ the market
This was a swing and a miss... Sell these asap to recover any residual premium.
We bought this for a huge earnings beat. We didn't get it.
Gild shows a little higher in the pre-market, but not the huge pop needed to make this trade pay.
With 2 days left in the Calls the premium will drop like a stone.
We're still friendly to the company.
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Stocks...
GOOG...1120-22 is pivotal for GOOG and the entire board. Sustained and closing price action under 1120 will lead to another bout of Risk Off. That could easily lead to another 100 points down in Nasd.
Nasd 100...needs a couple of closes below 3420 to start another leg down.
Spu's...the resting buy stops are above 1753, today's ORH #
EWW... 62.60 is resistance. A close over 62.90 would be short term positive.
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Bonds...
30 yr. Bonds...the long term macro Buy Stops are 135.28
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FX...
USD/JPY...the levels haven't changed.
USD/MXN...The Peso has had a big rally and is coming into resistance @ 1328
Commodities...
Oil...has to sustain over 98.70 to show it has any possibility of breaking out of this recent range, and even then I think it will struggle to trade close to 100.
General Comments orValuable Insight
It's the mid-week shuffle and so far the rallies have disappointed by not getting high enough.
So far we've seen oversold levels that create a temporary respite from selling.
I'm going to keep an eye on some of the big cap momo names from last year like PCLN & GOOG for potential price breakdown.
Just as buying lead to more buying last year, selling can beget selling this year.
We're going to take a look at the market one level at a time. Closing below 1720 would generate new S&P tgt's.
We're looking at the buy levels in the Equity Indices for a short term bounce only!
This market will take time to bottom, which can take at least into next week.
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 neutral Equities. The next several weeks are setting up to be a big trading affair.
The 30 yr. Bond Futures will be the least volatile way to play a Risk On
bias. The Bonds have led from the first week of the year
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Medium term...
Spu's...there are a lot of analysts looking for either 1708 or 1685 to be the low in this Index.
My work shows you could indeed get bounces from those levels, however my work shows the potential for a bigger break?with closes under 1720 in the Spu's and 3420 in the Nasd 100.
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