October 22, 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 (EU6Z) EURO ? ? ? ? ? ? ? ? ? ? ? ?? 127.27? ? ? ?? 124/122
Short (DA6Z)AUD/USD????????????????? ?? 87.82
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Today's Working Orders
No working orders.
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Stocks...
Equity Indices have exceeded all my # sets for this rally. They've all come too far not to have some profit taking or back and fill.
SHCOMP...is attempting an ORL day, however it's sitting right on 200 WMA support @?232379. This needs to close below this level to weaken.
Bonds ...
30 Yr. Futures...141.22 is Fib support. Price action under 142.09, short term support,
is needed for lower. Resistance is 144.10.?
Bund...has a double top @ 151.12. 150.00 is mvg avg support.
FX...
Euro...needs to maintain under 126.90 to extend lower.
AUD/USD...needs sustained price action below 87.50, the qtrly close, for more weakness.
We'll likely use a break even stop on our shorts, although it would take just over yesterday's high of 88.34 AUD/USD to turn the point & Figure chart up.
Futures (DA6Z) are trading app 34-36 tick discount to cash.
USD/JPY...is caught between 107.65 (92.89 Futures) and 106.30 (94.07 Futures).
Commodities...
OIL...WTI is stuck between 83.11 and 82.30. Look for an initial 80-90 cent move in the direction of the break out either way.
By maintaining over 83.15, look for a run towards 84.50.
Brent...84.50 is support.
This now becomes the downside closing pivot as well.
88.20 is resistance and the closing upside pivot.
Soybeans...have had a destiny with $10 for weeks. 10.065 - 1019 is resistance.
it would take a couple of closes over this level to start another leg up.
General Comments or Valuable Insight
Keep it simple today. Just use the opening ranges and the first couple of minutes of price action to see what's what.
Oil has been a big spread with the buying of Brent and the selling of WTI.
Winter is coming to Europe, just be aware of the game.
Price action above 83.11 in the WTI can trigger the unwinding of the spread.
Those that are long only investors should consider buying the VIX in the 14 handle for portfolio insurance if it trades there before Friday's close.
For Medium Term Outlook click here.
For Glossary of terms and abbreviations click here.