May 14, 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????????????????????????????????????????? 9.76??
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Today's Working Orders
Sell?UVXY?@ 11.85
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Stocks...
Trade the specific stocks like FEYE,GILD,ABBV,BMRN & PBYI which have friendly patterns.
VIX...14.12-23 is mvg avg and momentum resistance. Sustained price action over should lead to 14.80.
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Bonds ...
Bunds...154.16 is the 200 DMA
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FX...
AUD/USD... I'm looking for 82.00 to cap this rally the first time up.
EURO...115.30 is weekly momentum.
EUR/JPY...137.29 is 200 DMA. 137.93 is major Fib resistance.
Commodities...
Brent...Ice contract expires today. Pay attention to the pit opening today in WTI.
We've seen multi-dollar lemming effect trading on these expiration s in the past.
In short...don't get run over trying to fade the tape.
General Comments or Valuable Insight
?My issue with the entire board is how big the adjustment will be in Equity Indices to the recent break in world bond markets.
The first two breaks resulted in initial Index weakness which richly rewarded the VIX trades. Now the breaks in the U.S. Indices are getting shallower while the Dax?fell?victim to the falling Bund and rising Euro.
This thinking lead me to repurchase the UVXY again. If I give back a few percent after collecting close to 20% in the previous trades it's not the end of the world.
I'll be patient with it through the A.M. data releases.
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For Medium Term Outlook click here.
For Glossary of terms and abbreviations click here.