March 3, 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
LONG EFA 66 3/06/15 Call ? ? ? ? ? ? ? ? .13
LONG MMM?????????????????????????? ? ? ? ?? 170.50????????????? 167
LONG INTC??????????????????????????????????????? 34.06?? ? ? ???????? 33.25
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Today's Working Orders
SELL 30 EFA 3/06/15 66 Calls...when EFA prints 66.
BUY GOOGL? @ 554
Stocks...
GOOGL... 554-550 is the low risk buy zone.?
NFLX...shows a potential weekly double bottom @ 470. Below, all the new longs will get run out.
PRU & CB... are two financials that put in ORH days yesterday. As long as Chubb stays above 100 it's ok. Pru, that # is 80.50.
I'd prefer to buy a break in the Financials than step out on strength.
Bonds ...
30 Yr. Bonds...I was surprised by the ferocity of the break in the 30's yesterday. I'm now of the opinion that the June 30 will eventually trade down to the 153-154 over the next few weeks.
Sell any good rally.
FX...
?
USD/JPY...price action under 119.52 (over 83.66 Futures) today's OR# will run the weak shorts out.
Note the ORH # in the all session Futures sets up slightly different @ 83.58. Always defer to the cash level.
Dollar Index..."DXEH5" isn't backing off. Follow the Bonds...Bonds lower = DXE higher.
Commodities...
Natgas... needs sustained price action over 2.71 to show any strength.
OIL...49.70 is today's support. Price action and a close over 51.25 resistance is needed for a move higher. Crude has been range bound for 5 weeks.
General Comments or Valuable Insight
The Financials put in ORH days.
The past couple of times we saw this pattern they opened lower and regrouped for a couple of days before heading higher.
That said, with the Bonds lower this A.M. you could see upside follow through.
Pay attention to the opening ranges today in the Financials.
WFC,C, & XLF should be on your radar for this week. A shallow pullback should provide the impetus for a late week rally.
I added 3M & INTC yesterday. Both are low volatility sleep tight names that can work.
I chose them simply off their patterns.
The Equity Indices do not have to move much with the action in the Long end of the curve.
Equities will be a pick your poison affair. With the Bonds down (Yields inching higher),?look for?the Financials to react positively.
For Medium Term Outlook click here.
For Glossary of terms and abbreviations click here.