January 6, 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????????????????????? 540 ???????????????????? Stop Close
SSO Long?????????????????? ? ? ?? ? 98 ????????????????????????? 99.80 ????????? ? ? ? ? Stop Close
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Today's Working Orders
No working orders
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Stocks...
GOOG...put in an ORL week. Below 1101 this can pick up some downside momentum.
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Bonds...
30 Yr. Futures...sell rallies not breaks. There should be small resting buy stops around 129.00 which could lead to another 1/2 point rally.
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FX...
AUD/USD... 90.10 is the qtrly pivot. Maintaining and closing over that level would lead to another 100-150 points in the Aussie, and a much deeper correction in the EUR/AUD cross.
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Commodities...
GOLD... 1257.50 is the 50 day mvg avg matching 1265-75 resistance area which has been pivotal for months.
Silver...anything close to 20.50 is resistance.
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General Comments orValuable Insight
The theme from the first two days of 2014 continued into Asian trading.
Profit taking in Equity Indices, Short precious metals/vs Long Continental currencies continued.
So did profit taking in all the Yen crosses and EUR/AUD.
The Yen will remain highly sensitive to profit taking in the Nikkei and Spu's.? "weak equities=stronger Yen"
All these trades remain highly correlated to a risk on board.
GBP/JPY has moved 50 figures in the past two years. Investors should be very patient waiting for new direction to be confirmed.
Better to miss a couple of wiggles than to be early in the currencies.
Markets have stabilized before the U.S. opening, with the holiday makers coming back to their screens today for their first full day of trading in weeks.
Traders should be in no hurry to fade the first of year price action, which has been to unwind (take profits) every trade for the past two years.
Today's early expected move would be for strong Equity Indices, with new money being deployed by mutual funds.
If the equity indices can't hold up today after London's close, short sellers could make an appearance.
Time frame trading today.
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. We'll be leaving our trailing stops as is.
They are stop on close orders.
We'll let the market take us out and prove us wrong.
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