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.
I feel like I’ve just stepped up to the pass line at a craps table.
Here is the rub. I like the thesis, however I don’t like the ORL pattern in the SHCOMP although it’s sitting right on trend momentum (Support)
This could be the stone cold low for another rally or we walk into another 5% lower.
The only effective means of trading China weakness tonight would be to sell Aussie as a hedge. 76.25 in the Aussie is not a great spot to initiate new shorts.
If the pattern holds, we rally into tomorrow through the weekend and retest last night’s breakdown level. This is what I think is going to happen.
This would give us an opportunity to cut our losses.
?Heads I lose…Tails I lose less.?
I feel like I’m in a Dirty Harry remake…”you gots to believe” to hang onto this instrument.
?T?here is no good way of managing an ETF overnight.
?The risk to stay Long is a gapping down below the 50 DMA @ 59.90 in the A.M. which could lead to the mid 58’s?.
What do you do when you get out of step?
Stop and regroup.
SELL MCHI Market On Close!
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