January 21, 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...
SPU's...2028 is daily resistance and the upside momentum #.
Nasd 100... 4182 is daily resistance and the upside momentum #.
SNDK...reports today.. There are weekly options available that expire Friday.
This stock is oversold so an outright call or a call spread seems viable.
For a cheap look buy the 87 strike outright.
An 84/88 call spread could work as well.
DIG...51 is resistance.
JJG...is showing bottoming action. 37.70 is today's resistance. Closes over 38.60 are needed to confirm a low.
Bonds ...
30 Yr. Futures...149.00-148.30 is pattern support and the downside momentum level.
FX...
USD/JPY...a close over 118.90 is needed to confirm more downside in the Yen.(under 84.10 Futures).
EURO... price action over 116.60 is needed to run out shorts before the ECB meeting tomorrow.
Commodities...
Silver...17.15-20 is support and the low risk buy zone. 18.46 is the 200 DMA & resistance.
GOLD...1255 is the 200 DMA (support). 1242-45 is the lowest risk daily buy level.
1300 is resistance. Sustained closes above 1300 can lead to a test of 1400.
General Comments or Valuable Insight
EURO Bears...many of you have been riding the wave down in the Euro either via short the FXE or Long EUO.
I'm not advocating getting out of that position since the Thursday ECB meeting could cause an OPEC like move in the Euro lower.
What I am advocating for those that are short is to pay out a little premium for upside protection to collar your trade.
There are weekly options that expire on Friday. "As of yesterday's close"
116 FXE Calls that expire the 23rd...? .22 X .26
23 EUO Puts that expire the 23rd.????? .40 X .50
EUR/USD needs price action over 116.70 to start a short covering rally.
The wave counts can see this go as low as 107.00.
ETF traders will have no chance at buying Euro since the ETF's will be closed when the release hits the wires tomorrow. The ETF's will gap open one way or the other after the news.
Therefore, if you want to do something to protect your profits, you need to do it by the NYSE close today. The lower the Euro goes going into the end of day the cheaper the protection will be.
For Medium Term Outlook click here.
For Glossary of terms and abbreviations click here.