November 13, 2013 - 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 SSO ? ? ? ? ? ? ? ? ? ? ? ? 91.60 ? ? ?? 91.60 ? ? ? ? ?? 102
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Today's Working Orders...
BUY TBT @ 76.60 GTC
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Stocks...
DXJ...we'll be looking to add this to our Risk portfolio if we see a close over 48.25 today.
?
Bonds...
30 yr. Bonds...although we saw a little rally from the expected bounce area yesterday into last night. It has not put a reversal back to the upside on the Point $ figure charts as yet.
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FX...
AUD/USD...is getting oversold. 92.80-90 is a level to look for a bounce.
EUR/AUD...put in a potential double top last night on the daily @ 144.85. This coupled with the low in the Aussie makes it a low risk sale.
Short term traders should "sell this before you try to buy " at these levels.
Commodities...
OIL...Any prints under 92 in the oil will be a Bear trap today.
Long Brent/ Short WTI is still the feature.
Gold...the next set of macro sell stops are under 1260
General Comments or Valuable Insight
Yesterday we placed an order to Buy the QQQ on a stop close only.?
The order was not elected! We have no position in the QQQ
Stop Close Only Orders:
A Stop Close Only order is exactly the same as a Stop order but is only activated if the price level is at or exceeds the must level on the close. Much like stop orders, Buy Stop Close Only orders must be placed above the market whereas Sell Stop Close Only orders must be placed below the market. Like a market order, a Stop Close Only order may not be filled in some cases, such as when the market is "locked limit." Stop Close Only orders are not accepted on all exchanges. Check with your broker or trading desk for each exchange.
If you're unsure of the definition of an order or any other financial term just "google it".
It's the mid-week shuffle. Less is more today.
We're looking for contra trend extremes today.
I.E. a low in the Equity Indices today going into tomorrow, coupled with a rally to nowhere in the Bonds to sell.
Short term traders should use their time frames and opening ranges to manage risk.
Chasing markets at these levels is unwise. The Sector Stock rotation in the Equities has been a tough read.
There is always one group of equities keeping the Indices churning at these levels.
Short Term View...
Keep trading to make money. The opportunity will be in individual names.
Individual stocks look to be an easier read based off their own technical s. The Equity Indices seem stretched at these levels.
Go with the flow. Use the 9/30/13 ( September 30th) closes as your macro pivots. Trade the opening ranges and early time frames.
For Glossary of terms and abbreviations click here.