September 3, 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.

Back and forth we go in the Equity Indices.

 

I view this as a technical range trade. The Spu's need to elect the 1625 sell stops to entice new sellers. 1619 is the next support area off the present swing counts.
We've seen another failure to rally anywhere in the broader indices?from Europe to Asia.

 

Midcap 400 is leading the equity weakness. It put in an ORL week and has failed on a retest to negate the pattern.

 

VIX...support is again matching up with Equity resistance.

17.70-80 is next Vix resistance and Friday's high, which should be used to match up with lows in the Equities the first time down..

 

Taper talk has everybody chasing the Bonds. Any short term traders should continue to keep looking for full point moves.

Euro...131.44 is the 200 day mvg avg. I would expect to see at least a couple of attempts before we see a close under this level. Sell 80-100 point rallies not breaks.

USD/JPY...99.15 ( app 100.85-90 Futures) is Yen resistance.?It would take late afternoon Equity Index weakness to get through this level in the Yen.

John has some great trades on. Sit back and let them work.

 

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