February 6, 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
LONG DXJ??????????????????????????? ????? 50.38
?.......................................................................................
Today's Working Orders
Stocks...
SPU's...2065 is resistance and the closing upside pivot.
Spu's and the spreads put in ORH days yesterday.
It's all about whether the market holds a retest and honors the pattern.
EFA...64.00 is the first tgt. 65-65.20 is major resistance the first time up matching weekly cloud resistance and the 200 DMA.
IBB...Bulls will want to see a close over 322.45 today.
Bonds ...
30 Yr. Bonds...there is a coupon and valuation difference between the March and the June 30 yr. which closed yesterday @ 165.28 "Globex" putting in an ORL day. Resistance and the upside closing pivot is @ 168.12-17.
Below 165.00 support, there is room for a move to around 161.22.
Yes, that's a 16 point difference. First, this contract has already broken almost 7 full points off the Jan 30th high, which is close to a big standard deviation move for a 30 yr. contract which is 8 -10 Full points.
Second,"Food for thought", I would think there has to be an effect on the ETF's once the current March contracts near expiration and need to be replaced with the June's which yield much less.
The rate game looks to be played out in the June's not the March's, which makes me think the ETF's might have to wait another month or so before a big move presents itself.
FX...
Commodities...
OIL...51.60 is near term point & figure support. 50 is support below.
52.50 is point & Figure resistance with 54.64 above, which is the 50 DMA and the closing upside momentum level.
Take the Oil one level at a time. It's been a lemming effect trade all week.
Once those little guys get running they don't form up again until the next big time frame.
Gold...1254 is today's 200 DMA support with resting sell stops below.
1273 is resistance and the closing upside pivot. The RSI's are neutral.
Expect close to 20 dollar moves with sustained price action either above or below the above levels.
General Comments or Valuable Insight
In today's episode of "Beat The Bots" I'm interested to see how the Equity Indices hold early after the #. I would prefer the Indices breaking first and then rallying vs. a gap up into the mid 2060's in the Spu's, for this scenario would make the Indices prone to profit taking.
Unemployment Friday's typically mark a significant high or low for the next month in the Metals. (market extreme). I've a mild bearish bias for I've a risk on book in the Equities.
An early spike up and price rejection @ resistance, followed by price action below the opening range would lead one to think that the Gold will try for the stops below the 200 DMA.
BRK.A VS BRK.B...I bought the B shares since the A shares are $225,000 a share.
I thought that would be more money than most of you would like to tie up.
For Medium Term Outlook click here.
For Glossary of terms and abbreviations click here.