October 17, 2013 - MDT - Full Moon Trading

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.

Why am I getting out of the Aussie, which is a Risk On Trade.

Let me count the ways, half the trading universe will be pulling out their Ouija boards to discern the next move tonight into tomorrow.

Sounds silly but it's real! This is 40 years of empirical observation, you just can't make this stuff up.

Don't be a Dick for a Tick!! (old traders adage) Close enough to the tgt in the Aussie!

From a purely technical take, the Russian Ruble, Brazilian Real are

coming up to their 200 day mvg avg's with an overbought condition.

USD/CHF...@ 90.00 must have the Swiss National Bank unhappy even though it's maintaining on the Cross with the Euro.

This increases the odds of price rejection. Markets tend to be led by their currency.

Spu's...have printed the qtrly pivot after another 80 handle move.

Time to be cautious!

Short term traders can wait out the price action for a day or so.

VIX...printed below 13.00, right where the party started.

Buying portfolio Ins for the Risk On (Long Only Crowd) just got cheap again.

Short answer; There are enough markets lining up to become cautious and most of all patient.

For Glossary of terms and abbreviations click here.

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