May 12, 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 UVXY???????????????????????????????????????? 9.64?
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Today's Working Orders
Sell UVXY @ 11.85
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Stocks...
UVXY...I'm going to Cancel my resting order to Sell @ 10.38. I want to give this some room to work.
Price action over 10.50 can see this gain upside momentum.
I'll monitor the price action this A.M. and place a market order to exit
VIX...14.12-23 is mvg avg and momentum resistance. Sustained price action over should lead to 14.80.
Equity Indices...Spu's & Nasd 100 are trading around their respective 50 DMA's. (2080 & 4398).
FTSE ...support starts in the 6840's.
Bonds ....
Bunds...155.74 is the key feature. Maintaining and closing below this level would mark the technical top of this instrument.
152.45 is the first downside tgt.
Bunds are trading close to where they were in July 2014.
30 Yr. Bonds...have hit another downside tgt in the 151 handle.
FX...
GBP/USD...156.20 needs to hold on breaks to see something closer to 158.70.
AUD/JPY...95.55 will be pivotal all day.
Commodities...
General Comments or Valuable Insight
?What worked in the late 70's and 80's for the big hedge funds is back in vogue.
During those years Soros, Jones & Robertson would lever up their balance sheets and take the other side of Central Bank currency intervention and ram it down their throats!
For every Billion a central bank spent they would lever up 10 Bil and take the other side.
Now you're seeing this price action emanate throughout the world Bond markets. Between Pimco, Doubleline & Gross, these few big Bond funds, just in the U.S., have assets closing in on 400 Billion. Now add in everyone else.
The ECB doesn't stand a chance. The intervention was eaten alive and the big boys are looking for any rally to jam down their throats.
Trade the price action with the big boys and sell any failed rallies.
For Medium Term Outlook click here.
For Glossary of terms and abbreviations click here.
