September 24, 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

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Short 4 EURO ? ? ? ? ? ? ? ? ? ? ? ? 128.76 ??????? 127.55/122

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Today's Working Orders

BUY 2?Euro @ 127.77 basis cash ( 127.84 Futures) GTC

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Stocks...

DAX...9560 is today's 200 DMA. I've attached a DAX/BUND daily and weekly chart.

This is Long Dax ( German Equities) vs Short Bund (German 10 Yr. Bonds).

We're at an inflection level in the spreads and the outright Dax. We either hold these levels or we have a much deeper correction in Europe as well as the U.S.

Spu's...price action under 1968 is needed for more selling.

Bonds ...

30 yr. Bonds...they're the opposite side of the spread. Stocks up/Bonds weak.

Bunds...need to close over 149.31 ( 50 DMA resistance ) for higher. 149.73-77 is the next daily & weekly resistance level. The eventual target for the Bund is a retest close to 151.00.

FX...

EURO...129.25 starts resistance with a close over 129.45 needed for higher. Price action under 128.20 is needed to extend lower.

USD/JPY...108 .05 (92.59 Futures) is dollar support/ Yen resistance today. Above 109 (below 91.74 Futures) is needed for further weakness.

Commodities...

OIL... 92.60-80 is a spot to sell the oil with a tight stop.

General Comments or Valuable Insight

We got stopped out of the Regional bank ETF yesterday on the close. I'll be looking to renter the Financials when I'm convinced the Bonds have topped again.

Many Global macro traders will be shut down for the Holiday.

Bots rule.

Expect lighter than normal trading volumes.

It's the mid-week shuffle. It's all about where instruments start and stop over the next day. Long term investors need to do their homework on names that are of interest.

The tape is split with some social media names like Gopro,Facebook, AAPL & AAPL surrogates like NXPI doing one thing, and the rest of the market another.

La Shana Tova to all my Friends. Wishing you a happy and healthy New Year.
We'll be closed tomorrow for Rosh HaShanah.

There will be no Pro Tips or MDT opening bell tomorrow.

Time Frame Trading today.?

Long Dax ( German Equities) vs Short Bund (German 10 Yr. Bonds).

DAX/BUND Weekly

For Medium Term Outlook click here.

?For Glossary of terms and abbreviations click here.

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