January 22, 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????????????????????? 520
Orders are "stop on close" unless stated otherwise.
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Today's Working Orders
No working orders........
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Stocks...
PCLN...remains in it's own insulated world. By maintaining above 1198 close, this has much higher tgt's. The 1230's would be a chip shot near term tgt.
The monthly chart shows that this momentum name, which doubled last year, can only be traded using a trailing stop to manage risk.
Only a couple of closes below 1145 would lead to a good sell off.
IBM...spiked above the 200 day mvg avg after the close and sold straight off. 181 is Fib support for this wiggle.
If this can hold after the opening flush, it could be a good candidate for an opening range trade with a very tight stop.
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Bonds...
TBT...held the 200 day yesterday @ 73.40.
I need to see some more price action in the futures to decide if that was a good enough low in the TBT (High in the Futures) to put out the short Bonds (sell USAH) for a longer time frame trade.
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FX...
AUD/USD...has room to run back to 90 cents on the Point & Figure chart.
EUR/AUD is into daily support @ 152.50 ish. Monitor this cross if you're trading the Aussie. It has the potential for a daily ORL with a close below 153.27. (This would be short term price positive Aussie).
AUD/JPY...is coming into daily and weekly resistance @ 92.70 ish.
Short answer here is to be patient and not try to sell this Aussie rally too early.
GBP/USD...is trading unchanged on the year. Buying strength at this level, mid-week, looks to have poor risk reward.
Commodities...
Oil...March (H) is front month. 95.75 is the start of resistance which runs to 96.15. Short term traders should sell before they buy at this area.
GDXJ...the junior miners have rallied 20+% since I wrote a piece on the metals the last trading day of 2013. This is a big standard deviation move, one which is too risky to chase.
General Comments orValuable Insight
Stock rotation has been brisk. The Equity Indices remain in a sideways pattern.
I'm not looking to get involved for the sake of being involved.
Tech and healthcare continue to provide opportunity.
Let the day unfold.
Time Frame Trading.
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 have a Long Equity Bias.
For Glossary of terms and abbreviations click here.