September 25, 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

No Positions?

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Today's Working Orders...

No working orders?

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Stocks..

Spu's...1682.50 is the final hold #.

Bonds...

Bunds... are into weekly resistance around 140.

30 yr....131.11-15 is resistance and the upside pivot.

FX...

Kiwi...8160-70 is support

AUD/JPY...91.50 is support

Commodities...

General Comments orValuable Insight

Pay attention to the opening range trades and your early time frames.

We get numbers that we like to trade because we know exactly what type of price action and tolerance are involved for them to work. The bonds were one of these trades, however with the Bonds we didn't get the price separation we were looking for from the targeted level. That doesn't mean it won't reject, it just means we had other expectations as to how and when.

We laid out the possible price action yesterday from this area. I suggest you re read it.

These type of technical set ups are high value risk /reward trades we'll always try.

They're what I like to call a cheap look at a level to see what you get.

My problem staying with the Bond trade is my general market bias, which is down in equities (SPU/BONDS). This shaded my willingness to stay with a short Bond position, which would be contra trend a Risk Off board.

This leads right into the reasoning behind me canceling the buy orders in the Pound & Aussie yesterday, since a long position would be reflective of a risk On Bias.

The game today boils down to an early hold and rally in the Equity indices and a break in the 30 yr. off an early high for the Equity Bulls.

Today will be a price action time frame trading day.

There will be a big game played out over the next 7 trading days. The best way to play is to chip away at the macro levels from either side and continue to take your money.

We had a # which we tried and it wasn't giving us any love. Time to let it gestate.

Short Term View...

We have an interim top in place in the Equity Indices. Single instrument should be evaluated on their own merit. Trade only at the big levels.

A few of the tech names and healthcare are remaining buoyant. They're the usual suspects we continually write about.

For Glossary of terms and abbreviations click here.

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