March 4, 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...
SPU's...2093-95 will be pivotal all day. The index can hold here, however sustained price action under will lead to more profit taking.
DAX..11,200 is the hold level. Sustained price action below this level will have me looking for a much deeper correction.
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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...
Dollar Index..."DXEH5" isn't backing off. Follow the Bonds...Bonds lower = DXE higher.
EURO...it's an oversold pig with no bounce. Short term sell stops are under the yearly low @ 110.98. Any print into the 108 handle is a cover the first time down.
Commodities...
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. The rsi's are neutral.
General Comments or Valuable Insight
All the Equity indices from Dax to Midcap are on pivotal hold levels.
The momentum healthcare names remain the rewarding place to focus your attention.
Whether or not these companies have any fundamental underpinning is irrelevant.
You ride the ride until you get bucked off and look for another.
There is a lot of data and news driven events over the next 3 trading sessions,not to mention a Full Moon Thursday night, which generally makes everyone nuts.
It's the mid-week shuffle. Less is more.
Position comments...
MMM has turned out to be quite a dog. 167.70 is the weekly ORL #. Price action later in the day will have me exit this stock.
EFA Calls...I'll just let these expire worthless which was my original plan.
It was a pass line bet.
It was the only way I was going to take a Long bet on Europe after a big run. Now with yesterdays topping pattern in the Dax it seems to have been the wise choice.
For Medium Term Outlook click here.
For Glossary of terms and abbreviations click here.