December 4, 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
TBT??? ? Long??????????????????? 77.42??????? 76.80
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Today's Working Orders...
Sell Oil @ 97.80
Sell?1/2 TBT @ 77.95
Sell TBT @ 76.80 Stop...This is an intra day order
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Stocks...
IBB...sustaining under 220.60 can lead to a test of the gap up from 214.30. 217.40 should elicit a bounce. My buy zone is 214-211 with a tight stop.
SPU/BOND...is still maintaining above the 18 day mvg avg @ 13528. Only price action below this avg will lead to a correction in the Spu's and a rally in the 30 yr.
TBT...78 is resistance. Closing above 78.50 for a couple of days will start a new move higher.
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Bonds...
30 yr. Bonds...131.00 +- a couple is support. Once convincingly below another leg up in Yields can materialize.
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FX...
EUR/AUD...150.34 was resistance with resting buy stops above which were elected last night. I'm not about to chase this cross with the Aussie getting oversold into a tgt level.
AUD/USD...91.42 is now key closing resistance. 90.00 is the next downside tgt.
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Commodities...
Natgas...4.17 will screw the longs the first time up. 3.70 ish is support.
Macro Buy stops are over 4.44. Closes over 4.25 are needed to expect a new Bull move.
OIL...97.90 is resistance and a low risk sell zone for a reaction trade. Closing over this level will lead to a bigger rally.
General Comments orValuable Insight
We've placed an order to Sell Oil @ 97.80. We're looking for a reaction trade. We'll be covering 1/2 the position 80 cents lower if filled and the rest @ 95.70.
Oil might have already seen a trad able high last night @ 97.50.
This is a contra trend futures trade. We'll be using a 30 tick stop.
Watch for the updates if we get filled.
If we don't get them early I'll likely cancel the order!
TBT...I've placed an order to take half the trade in the TBT off @ 77.95
I've been running very small positions and the big day in the Bonds will be Friday. I'd rather pay for the stop, lock a little in so I can sleep through the
Friday jobs report.
Adjust your stops accordingly if we get filled early on the sells @ 77.95!!!!
I hate the Natgas ETF's! The names have always been a better place to play. If you've got the stones to trade the Futures, so be it.
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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.
Your short term pivots are Friday's closes unless stated.
Just ask yourself..is it trading higher or lower on the month?
For Glossary of terms and abbreviations click here.