October 2, 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
Short 1 EURO ? ? ? ? ? ? ? ? ? ? ? ? 128.76 ??????? 122..00
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Today's Working Orders
BUY 1?EURO @ 122.40 GTC...This is a closing trade.
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Stocks...
Nasd 100...4016 is resistance. 3948 is weekly support.
FB...could go as low as 75.40 and snap back, however a close tomorrow under 75.95 will have this name heading south for as much as a 10% correction.
VIX...17.50 is weekly resistance. A close over this level is needed for a much deeper correction in Equities. 15.35 is daily support.
Bonds ...
30 Yr. Bonds...need to work back under 139.08 to break much.
Bunds... what was resistance is now support 149.73-77. The eventual target for the Bund is a retest close to 151.00.
TLT...118.75 is resistance. Sustained price action over 119.05 is needed for higher.
FX...
EURO...127.50 is resistance.
USD/JPY...will need back over 109.25 close for the Yen to weaken.
Under 108.25 (over 92.38 Futures) on a Friday close will extend the rally in Yen.
AUD/USD...despite the short covering rally in most currencies last night Aussie needs a close over 88.10 to rally.
Commodities...
OIL...87.85 is the January low. This is not an area to entertain new shorts, it's a level to tighten up risk for shorts.
Brent...9185 is the monthly inflection level for Brent. it's not a place to establish new shorts without further price action.
Natgas...natty shows 3.94-97 support. This is the low risk buy zone with a tight stop. This will also act as the closing downside pivot. 4.25-9 is weekly resistance.
General Comments or Valuable Insight
The Yen put in an ORH pattern which is signaling the ebbing of the recent dollar strength against the Yen.
Markets are digesting yesterday's big sell off in Equities and the commensurate rally in treasuries.
We've had out sized standard deviation moves that deserve some consolidation.
Time Frame trading today.?
For Medium Term Outlook click here.
?For Glossary of terms and abbreviations click here.