July 3, 2013 – MDT Pro Tips A.M. – Mad Hedge Fund Trader

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.

No Positions

Stocks..

Spu’s…a close under 1590 would be negative.
Nasd 100…a close below 2888 would be negative.

Bonds…

30 yr. Bonds…by maintaining above 135.00 this has the potential to reach 137.20-24.
TLT…needs to maintain above yesterday’s low. Price action above 110.80 is needed for higher.
TBT…71.00-70.55 is the lowest risk buy zone.

FX…

USD/JPY…99.50 (app 100.50 Futures) is today’s ORL #. 99.20 is Yen resistance ( Dollar /Support) ” app 100.80 Futures.

AUD/USD…89.70 ish is possible, however this currency is very oversold. Do not chase.

AUD/JPY…92.49 is the 200 day mvg avg., which rejected big time. 90.47 is the qtrly close?with new weakness on a close below 88.75.

GBP/USD…Sterling is living up to it’s acronym with all the Mideast money being parked?in London. A close over 152.30 puts in an ORH day. 153.30 is 1st resistance with 153.70 possible.

Commodities…

Oil…last night’s high was close to the qtrly channel line. 103.50 ish would be a first extreme?on more Egypt tensions.

General Comments or Valuable Insight

The board is trading Risk off with Oil spiking on Mideast tensions.

Risk Off= Equity Indices down, Yen rallying on safe haven buying,Bonds Up.

The Indices have all come down enough with the London lows, meaning they can hold. I still do not expect to see much until Friday.

Having said that the later it gets in the morning, given early U.S. closings today,?the less people will be willing to be involved.

All traders should cut back their size this week and don’t fight the flows!

Short Term View…

Whether you are trading Equities,Bonds FX or a Commodity it makes no difference, use Friday’s closes in everything as your short term pivots. Good above, negative below.

Time to be a technical trader and robotic ally trade the extremes. Forget the fundamentals.

Pay close attention to your time frames and ebbing capital flows.

For Glossary of terms and abbreviations click here.

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