November 7, 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
Long? EPZ4.... ?Spu's? ? ? ? ? ? ? ? 2025.25
Short USAZ?????????????????????????????? 140.19 ? ? ? ? ? ? ?? ? ? ? ? ? ? ? ? ? ?
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Today's Working Orders
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Stocks...?
Spu's... could go as low as 2009-12 without doing any pattern damage on a disappointing payrolls #.
DAX...9310 is today's 50 DMA
XLY...Consumer Discretionary will get up and go over 68.10.
Both XLE & DIG look good to me and are ripe to catch up with the rest of the market.
DIG...by remaining above 63.80 close I'm targeting 69.50.
XOM...put in an ORH day. Look for a test of the 200 DMA @ 97.89.
Bonds ...
30 Yr. Futures... Price action over 142.10 resistance is needed for higher.
140.04 is initial daily support. Below look for close to another point.
TBT... 53.90-95 is next resistance. Sustained price action over this resistance level and it gains upside momentum targeting 54.78.
BUND...151.83 should be monitored for a potential head & shoulder formation.
Having said that, there is no upside to German rates until you see closes under 150.00
FX...
AUD/USD...86.58 is the level to key off of for the next move. Aussie has to get back above this level and stay there to not see a lower currency.
85.50 is major Fib support. Aussie should struggle to get through this zone the first time down.
I'm looking for a move closer to 80.50
EUR/JPY...needs price action under 142.14 support to see downside.
Commodities...
Natgas....put in an ORH day, closing? above it's 200 DMA.
Closes above 4.41 tgt 4.75.
JJG...a close over 37.45 is needed to gain upside momentum
Corn (CZ) is the least risky Grain to be long since the stop is 3.58.
SX...November need a close over 10.45 to gain upside momentum.
GOLD....needs price action and a close today over 1149 to run out weak shorts.
1160 would be the first resistance level, with 1180-90 the sell zone.
There is a big daddy crop report @ 11:00 A.M. CDT today.
General Comments or Valuable Insight
We've had a very big rally, which means we're back to the grinding trade in the Indices.
Stock rotation is robust, making individual names a better value proposition going forward.
The energy sector names are stabilizing after the big Oil break.
Shanghai Comp is lower on the week.?
The Dax remains a whipping boy, finding willing sellers at technical resistance vs Long U.S. equities.
With an early hold in U.S. Equity Indices after the payroll #, I would expect a late afternoon melt up.
For the more nimble traders, keep an eye on the banks and the associated ETF's on the NYSE opening today.
An early hold in the Equity Indices will see these names attract buyers.
For Medium Term Outlook click here.
For Glossary of terms and abbreviations click here.