September 30, 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...1664.50 is Fib support. Closing below this level will lead to a deeper correction. Weekly sell stops rest @ 1653.50.
Spu/Bonds...is trading again under the 50 day, which will make me very patient to put on Risk.
VIX...There are short term stops over 16.02. The short swing back up since the June high shows Fib resistance starting @ 16.80-17.15
Nasd 100...3193 is a possible short term hold level. Sustained price action under here would have us looking for 3152 for the next support zone.
Bonds...
FX...
AUD/JPY...90.62 was last qtr's close. The support zone and the downside closing pivot runs from 90.40-55. Under this level I'd look for another figure ( 100 Points)
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Commodities...
Precious Metals...these will be in play late?week.
Oil...is trading "Risk Off" with the Equities Indices. Caution is advised
selling weakness the first time under 101, the daily RSI's are getting oversold.
Fib and mvg. avg. support starts @ 99 down to 98.
General Comments or?Valuable Insight
Right now I'm leaning toward a long AUD/JPY trade as a surrogate "Risk On" trade later in the day. This would be a trade expecting adult behavior of the House Republicans.
Politicians will be true to their nature, so I'm not holding my breath.
Expect sound bites all day driving price action into the close.
A resolution to this drama will see a relief rally in Risk assets. This is my reasoning behind eyeballing AUD/JPY for a pop. It's a "Risk On" Cross we might be able to put on later today or late tonight pending good trade location.
If I don't have a stop I think I can live with I'll just pass.
Short Term View...
We're in a game of picking the next low for an attempt back to the highs in the U.S. Equity Indices. Right now individual stocks look to be an easier read based off their own technical s.
There will be a lot of jockeying and position marking into today's close.
The Black Swan trade is that we go to last qtr's close rather quickly. 1599.25 was the qtrly close with 1615 being a likely Bear trap the first time down.
Risk assets have been in need of this correction for a while.
I've seen this happen before and I'm not ruling it out. We could still see one more Mid-Week relief rally before seeing a scenario like this play out later in the month.
Most of this price action I'd rather leave to the robots.
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