January 16, 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
No open positions.
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Today's Working Orders
No working orders.
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Stocks...
ORL's abound. Spu's, Nasd 100,IBB,PANW,XLK,XLV,IWM...the list is too long!
IBB...took off it's party hat yesterday with an ORL day. Biotechs have been bucking the trend for a while. 303.35 is the 50 DMA. This is where the rubber meets the road.
This is a must hold level for the Nasd 100 to have any chance of not breaking to minimally it's 200 DMA @ 3947.
XLV...price action and a close under 68.96 leaves a path to 67.20 which is a must hold level to avoid what could turn into a 10% correction.
Bonds ...
30 Yr. Futures...resting pattern buy stops are over 152.17-22 with more over 153.11 (the 2012 high) all time low in rates.
FX...
EUR/AUD...140.25 is monthly support. Sustained price action below this level leaves way to for this cross to move in 200 point increments to the downside targeting 136.25.
USD/CHF....? 87.03 (Swiss Franc Futures...115...LAST YEARS HIGH) will continue to be a big pivot.
If you're going to trade this I strongly suggest using a 25x3 point & figure along with a 45 minute bar chart so you have a fighting chance.
Suisse is almost 4 cents off it's high in early Asia, presently trading right where it opened in Chicago trading yesterday. Looks like they forced everyone to puke short Swiss positions that weren't hedged.
USD/JPY...resting Yen buy stops are just under 115.56 (over 86.53 Futures).
114.78 (87.21 is weekly Yen resistance).
Euro...117.10-20 ( yesterday's CME PIT opening range) is point & figure resistance.
It would take sustained price action over 117.50 to elicit any meaningful short covering.
Commodities...
OIL...ICE Futures expire today.
Brent...47.70 is the near term pivot. Closing under this level is needed for another sell off. Sustained price action above 50.60 is needed for short covering.
General Comments or Valuable Insight
Yes, I think you'll get a bounce off the 200 DMA in the Spu's. Since it's late in the week i'd only be looking for a bounce, not a trad able low.
I'm risk averse and the board has been trading risk off.
Pay close attention to the Biotech's today! Although they put in Risk off patterns yesterday, many of the names were coming into near term support, which means they can reverse right back up and negate the patterns.
Look for another day of two way trading with the early moves from 8:30 CST into London's close the highest probability from a directional viewpoint.
Time Frame Trading.?
EURO
Swiss Franc Futures
IBB
For Medium Term Outlook click here.
For Glossary of terms and abbreviations click here.