October 9, 2013 - MDT - Midday Missive

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.

Nasd 100...3100 should bounce the first time down., however the bigger game will be played out @ 3076.50 which is the Monthly ORL#.

SPU's...1530-32 is the Monthly ORL# and the first downside tgt.

CB...Chubb Ins, a relatively low risk name, has doubled from the 2008 lowand now shows a potential double top on a semi annual chart.

Chubb needs to maintain above 86 close to avoid a very good correction.
We'll start preparing a shopping list for a big sell off. Momentum names have the most to break.

Once again each instrument must be judged on it's own technical's, they are not to be lumped together.

 

XLU...has put in a descent low. A close over 38 is needed for upside follow through and a close under 36.50 is needed for downside.

I'm mentioning the Utilities because it's a good fear gauge. Stock rotation out of High beta names into lower volatility dividend stocks.

GS...as long as this holds the 200 day 153.20 on a close it can bounce.

 

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