October 22, 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 GS 25%?? ? ? ? ?????????? 158.10 ???? 154 Close
Long IBM 25% ????????????????? 174.50 ???? 169 Close
Long VIX 25% ????????????????? 14/16 call sprd ? ? ? ?40
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Today's Working Orders...
We're canceling our working orders except for the protective sell stops
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Stocks...
RIO...by holding a break at 51 with an initial Gold sell off followed by an early hold, this is poised for a test of 55.
EWZ...50.48 is the 200 day in Brazil. It's a must hold level for higher and the
downside closing pivot.
Spu/Bonds...the spread is close to the 2007 high it broke from again. We'll be monitoring this for signs of a new move.
Bonds...
30 Yr. Bonds...the upside breakout is over 135 close. I have 2 support zones, 133.00 +- 2 ticks and 132.12-18.
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FX...
Commodities...
Crude...November Crude Expires today. 98.67 is the continuation 200 day mvg avg. We're looking for a bounce between 98.67 and 97.70.
The latter being overextended the first time down and the lowest risk buy zone.
Gold...use 1290 and 1345 as the early parameters.
General Comments orValuable Insight
Markets will be moving early with unemployment. This typically has us focus on the Bonds, Metals and the Currencies.
If the Bonds break first...hold and then rally, look for the Currencies and the Gold to do the same.
An initial sell off in the Bonds "Higher rates"? should initially give the Dollar a bid with the metals going offered.
The Bonds will tell you whether the Dollar breaks first or rallies.
Same with the Gold & Silver. Follow the 30 yr.!
Today we'll add the Crude and the emerging markets (EWZ & EWW) to our interest areas, which have been getting hit with the sell off in Crude.
A good low in the Oil would likely find some bottom fishing in these ETF's.
Short Term View...
Individual stocks look to be an easier read based off their own technical s. The Equity Indices seem stretched at these levels.
The Equity indices have been parked for the past few days as the tech leaders have rallied in some cases 20%. I'd rather miss something trading conservatively than to chase momentum.?
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.