October 3, 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...
SPU's ...need sustained price action back under 1928 to weaken.
Everyone is looking at 1954 ish for resistance, however the Point & figure has room for a move as high as 1967, which would? definitely screw the most amount of traders.
GOOGL...it was GOOGL trading it's 200 DMA @ 574 yesterday that matched up with the low in the Spu's. I look at a lot of stuff, but that one slipped through the cracks.
VIX...17.50 is weekly resistance. A close over this level is needed for a much deeper correction in Equities. 15.60 is initial daily support, followed by 14.75.
Bonds ...
30 Yr. Bonds...as long as the Bonds stay under 139.07 they can break to 138.11 with a hold in the equity Indices.
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 today's close will extend the rally in Yen.
AUD/USD...despite the short covering rally in most currencies Aussie needs a close over 88.10 to rally.
Commodities...
Gold...on a good employment # this A.M. Gold could run the long term sell stops @ 1179.
A running of the stops and a quick snap back up through the level ( and remaining above the level) could put in a trad able low.
I.E. ..this would be similar action IWM had yesterday after finally running the qtrly sell stops and snapping back with a big short covering rally.
Failure to see that type of price action and the Yellow metal will keep working lower.
Crude...needs a close over 92.50 to start up. A close under 90.58 puts in an ORL week.
Oil has been a classic lemming effect time frame trade. It has volatility, and once it starts the running of the shorts it's unrelenting until it hits macro levels and then reverses, doing the same in the other direction.
General Comments or Valuable Insight
Germany is out today, so it will be a U.S. show.
It will be interesting to see where the Equity indices start and stop.?
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For Medium Term Outlook click here.
?For Glossary of terms and abbreviations click here.
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