November 14, 2014 - 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??JJG??????????????????????? ???????????????? ? ? 37.00 ? ??????? 36.80 ? ????????????? 42
Long??Ford (F)???????????????????????????????????? 14.19?????????? 13.80
The above stops are Stop On Close.?? ? ? ? ? ? ? ? ? ? ? ???????????????? ? ? ? ?? ? ? ? ? ? ? ? ? ?
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Today's Working Orders
No working orders.
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Stocks...
ORCL...put in an ORH day. Look to buy early weakness against 40.45 with a stop below 39.95 close. This is a good candidate for an opening range trade today.
If this holds and starts up after the opening you can buy it with a tight stop.
If it opens and starts down do nothing.
Bonds ...
30 Yr. Futures... 142.10 is weekly resistance and the closing upside pivot.
FX...
AUD/USD... 87.35-50 is closing resistance that has to be overcome to believe the pattern. Holding above this level could lead to a run to 88.40.
EURO...for new direction Euro has to see new price action either above 125.10 or firmly below 124.00.
It's just a few ticks lower on the week as I'm writing this, having been a hostage to the crosses all week, going nowhere.
USD/JPY... 112.65 (88.77 Futures) is the place to Buy Dollars / Sell Yen.
AUD/JPY...has traded to it's first tgt level of 101.05. Pattern buy stops are @ 102.35, which should lead to an eventual 105 print.
GBP/USD...The next set of pattern sell stops are at 155.03. Below here I'm looking for the low 151's.
Only closing back over 157.50 would negate this view.
Commodities...
OIL...I'm looking for something closer to 71 dollars, with 69-71 being a multi-decade screw you zone on the qtrly charts.
Look to Brent for your lead.
Brent...needs over 80.20 to rally. 77.83 is the downside target and exit zone for shorts.
Sustained price action and a close below this level is needed for further weakness in the oil complex.
Price action back over 80.20 can lead to another short covering rally to as high as 83.00
Look for moves in 2 dollar increments.
Natgas...3.950 is the inflection level to key off today. With sustained price action below, look for 3.72.
Above, 4.09-10 is resistance.
Live Cattle...LCQZ...169.50 is the high weekly continuation close with 170.50. As long as cattle remains above 167.00 close, the pattern remains intact for higher prices.
General Comments or Valuable Insight
Spu's & Midcap tested their daily ORL levels during a low volume part of the day yesterday with both holding support and rallying back.
It's a bull market!
Don't get sucked into weakness unless it's in the last 30 minutes of the day.
Time Frame Trading!
Bull markets spend all day trying to break and a few minutes at the end of the day rallying to foil the shorts.
Spu's need under 2026.50 to begin to weaken and a close below 2020 to get interested in a downside.
Options traders...weekly options expire today. That simply means there will be lots of games being played late in those names.?
For Medium Term Outlook click here.
For Glossary of terms and abbreviations click here.