October 16, 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
No open positions.
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Today's Working Orders
No working orders.
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Stocks...
Spu's....1810 is support and closing below 1800 leaves way for a test of 1725-30.
Nasd 100...3700 is support and the closing downside pivot for another 150-200 points.
Minimally, this has to gain traction back over the 200 DMA @ 3768.
The next set of macro sell stops are at 3593.
IWM...had a big rally to nowhere. Price action and a close over 107.00 is needed to confirm a trad able low.
GOOGL...529 is monthly support with macro sell stops under 511. This would leave the door open to 460-470, where it would be a mean reversion.
The above price action would be the needed catalyst for a move to 1730 Spu's.
TWX...is another instrument that had a big rally right into resistance just shy of 74. 70.50 has to hold or it rolls over.
NFLX...260-270 is is pattern support and a reversion to the mean.
GOOGL...466 would be a mean reversion.
Bonds ...
TBT...will need a close over 51.11 for bottoming action.
30 Yr. Futures...the point & figure needs under yesterday's opening range of 143.09 for lower retests.
This just put in a double top @ 146.08. price action over this level is needed for more rally.
Bonds will continue to trade as a fear gauge.
So far we just had another mid-week rip your face off rally to nowhere.
Pick a side and choose your levels wisely.
Bund...needs a close below 151 to signal a low in the DAX.
FX...
EURO... Bears can focus on EUR/GBP @ 81.00 which is the 200 DMA.
At least here you have some trade location to try a short Euro via the cross.
129.50 is weekly resistance.
Commodities...
OIL..nothing but net. Oil has been an excellent scalp off the pit opening range.
77.25 is the level that can bounce. Price action over 83.30 is needed for bottoming action.
Brent...82.25 is First good fib support. November Brent expires today. The spread is 40 cents to December.
Price action can be extreme going into London's close today.
Gold...1238 will be pivotal. It put in an ORH day. 1256 is 50 DMA resistance, above 1275 is the next level.
1222 is pattern support.
General Comments or Valuable Insight
There are a lot of moving parts.
Time to focus on one or two instruments.
Nasd...100 is still up a 100 points on the year. I don't think for long.
If you don't have a stop or know where you are wrong don't trade.
LNG is a perfect example. Tuesday I was focused on it and yesterday it had a 15% range trading just shy of resistance @ 67.60.
You're going to see a lot of instruments keep trading like this until they have a mean reversion.
When and how much is instrument specific.
GOOGL earnings are out after the close. The NFLX miss took 50 quick points off the Nasd 100. A Google miss late would have a more dramatic effect on the Indices.
This will weigh on traders minds all day.
NFLX
S&P 500 Minis
?30 Yr. Bond Futures ?
