September 18, 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 AUD/JPY ? ? ? ? ?? 92.15 ? ? ????? 92.15 ? ? ??? 94.40
......................................................................................................................
Commodities...
Gold...1270's can trap new shorts.
Silver...below 21.40 20.85 is the next Fib zone. The long term point & figure chart shows the possibility of 20.40-60 today with a "Risk On" board late day.
WTI...Crude (Oct)...104.40-60 should bounce the first time down. This is not a level to press direction, rather it is an area to take profits. 106.90 is resistance and the upside pivot.
(X) November is now front month. There is a 55 cent discount from October to November. Trade accordingly.
General Comments or Valuable Insight
Lower metals prices is reflective of? Risk On board. When investors pursue interest bearing instruments ( a return) they shun the non interest bearing assets ( precious metals) and buy Equities ( Interest bearing assets). This is something we've been speaking about for months.
I have no idea which currency will lead AUD/JPY today. Yesterday it was the Aussie leading and I was looking to take 1/2 the position off based off the Aussie side of the cross. Today I'll either get stopped?out?@ break even ?after 1:30 CDT or I'll make a lot of money.
Short Term View...
Today has the potential for big extremes in the Equity Indices and Bonds.
Will it be a high or low for the rest of the week in these instruments? Since I'm not paying 35K a night to dine and rub elbows with the policy makers in D.C. I don't have a clue.
All I can do is respond to the price action. We'll write some further thoughts late morning.
Trade instruments off their own technical s
Time Frame Trading.
Trade of the day...
Let AUD/JPY ride.
Take profits on 3/4ths of the position @ 94.30.
You should have OCO orders working in the cross. (Sell @ 92.15 Stop or 94.30 OCO) "One Cancels the Other"
This is a Risk On cross. AUD/JPY could go as low as 91.85 and still hold, however the plan is the plan. "Break Even Stop"
For Glossary of terms and abbreviations click here.