November 27, 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
DXJ????? Long???????????????????? 50 ? ? ?????? 49 ?????????????? 53
APPL??? Long?? ? ? ? ? ? ? ??? 520.70?????? 518 ???????????? 545
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Today's Working Orders...
Sell?30 Yr Bond Futures (USZ)?@ 132.27?
BUY?TBT?@ 75.80
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Holiday schedule...
We're in office today through the A.M. 11/27/13
The next research will be sent Monday 12/2/13.
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Stocks...
BLK...As long as this maintains a close above 301, this has another 10% of upside based off this past congestion pattern.
The stop on any Long is 301 close.
EWW...yesterday's low was perfect Fib support. As long as this maintains over 64.30 close we're a fan.
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Bonds...
30 yr. Bonds...we missed getting filled on our shorts by 3 measly ticks.
Leave the orders working at the present levels, maybe we'll get lucky and get filled.
FX...
EUR/AUD...148.45 is today's ORH#. EUR/AUD is already well on it's way to put in an ORH month. Holding above this level will give way to a test of the August high of 150.34.
145.80 is the low risk buy zone. This is the spot to buy the spread before you sell with a 30 point stop.
USD/JPY...100.75 ( 99.25 Futures) is as good a spot as any to sell some Yen.
AUD/JPY...after hitting resistance @ 93.50 last night, AUD/JPY is attempting an ORL day with a close below 92.72. This cross needs back over 93.45 for yesterday's price action to be false.
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Commodities...
OIL...94 is still pivotal. Today, if there is no bounce early, I would expect to see the 93.10 and the 92.40 sell stops elected on it's way to 91.90 support.
Gold...needs over 1260 to rally
Soybeans...i have a dummy swing count to just shy of 13.70 based off the close above 13.20.
General Comments orValuable Insight
The currency crosses are where the action is. Long the majors against /short Yen and EUR/AUD.
I've no interest in chasing direction mid week, however that doesn't mean they don't keep going into the close today.
Most Futures close early today with the exception of the Equity Indices. cmegroup.com
Trading should be thin and sloppy. This is just another day in the Equities where you have to pick the correct sector and a dance partner that is willing to say yes.
AAPL...some of you bought the 540 calls vs. the outright shares, which have almost doubled. Congrats!!
We'll take a look after the opening to see if there is a higher strike to sell with some juice in it to have the trade on for free.
Since the options almost doubled you don't want to give it all back.
Lock some profit in by selling a higher strike or taking some of the Calls off.
Short Term View...
Keep trading to make money. The opportunity will be in individual names.
Less is more this time of year. Be patient, if you miss something it's much better than taking it in the shorts!
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.