October 14, 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 AUD/USD?? ? ? ? ? ? 94.32 ????? 93.70 Close??????? 95.25/96.75
Long FXA??????????????????? 94.31?????? 93.80 Close??????? 95.15/96.70
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Today's Working Orders...
Sell?1/2?AUD/USD?@ 95.14.
Sell?1/2 FXA @ 95.10.
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Stocks...
Nikkei & Dax are both hovering over the qtrly upside pivots.
Rio...by maintaining over 48.90,?should test 51.
Bonds...
FX...
USD/JPY...needs a close over 98.85 to start another leg down. (Under 101.20 Futures).
ETF traders... use the Cash or Futures for an indicator so you don't take a false signal.
AUD/USD...we think this is a win win trade. Congress doesn't act and China will likely diversify more dollars into other currencies , putting a bid to the breaks. A good resolution to the D.C. drama would create commodity demand putting a bid to the currency.
Commodities...
Oil...rallies continue to fail. Look for bounces all the way down. @ 100, 99 & 98.50 which is the 200 day, a likely short term low for a while.
General Comments orValuable Insight
What does the U.S. Congress have in common with Deer Hunters in Wisconsin?
They both hide in their blinds, while getting drunk, looking at Porn in between taking pot shots at the guy in the next field.
"But it wasn't me!" who fired the gun....Right!
I have absolutely no intention of getting involved in the indices until I see a clear path late in the week.
The algo's will be running wild on every news bite coming out of the beltway.
Those of you who are day trading stocks can always find a gem with trade location.
It's the start of earnings season so we'll start to look at some of the names reporting closer to the N.Y. opening.
Short Term View...
We're in a game of picking the next low for an attempt back to the highs in the U.S. Equity Indices. Right now individual stocks look to be an easier read based off their own technical s.
Go with the flow. Use the 9/30 closes as your macro pivots. Trade the opening ranges and early time frames.
For Glossary of terms and abbreviations click here.