July 15, 2013 - MDT Midday Missive

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.

AAPL...this needs above 432 to gain upside momentum.

DVN & PSX...are 2 names that can play catch up with firm Energy prices.

Emerging markets.

FXI... (China) a close above 33.65 will start another leg higher.
EWZ...(Brazil) investors are bottom fishing here today. This needs to maintain and close over 43.10 for higher.

This was an opening range trade. Meaning it opened and started up out of the opening range and has so far maintained direction. Any short term money should be using today's low as a stop for any new Longs.

Not all Emerging markets are equal. India has already had a big move up mirroring the U.S. Equities.

XLU...utilities is another example of an opening range trade today. This is an interest rate?sensitive sector, so when the 30 yr. bonds held early and rallied, it was a natural instrument to look for upside. XLU was mirroring the the price action in the interest rates...Lower Rates=Higher XLU

This is a dividend sector that will benefit in a falling interest rate climate.

The stock rotation will make trading the Indices very difficult as investors roll from instruments?that seem overbought to those they deem have not participated in this rally.

For Glossary of terms and abbreviations click here.

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