September 4, 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
No Positions
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Today's Working Orders
SELL 2 Euro @ 132.39
SELL 2 Euro @ 132.70
SELL 2 EUR/AUD @ 142.80?
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Stocks...
Dax...Hit big resistance just shy of 9700 yesterday. This still seems to be the lowest risk Equity Index short given the defined out.
Nasd 100...put in an ORL day. Sustained price action and a close over 4095 would lead investors to pile back in and discount Wednesday as a one off event.
Failing at this level will bring the shorts out of hibernation.
While assessing different time frames and charts many instruments including TQNT, WM, QQQ, NDU, PCLN, FB put in ORL's, they all closed into support.
Simply put we'll know just after the Draghi speech whether or not it was just the mid week shuffle with a false low or the start of a bigger corrective phase.
LNG...price action below 79 is needed for a good correction.
AAPL...98.50 was intermediate trend support. Price action below could lead to a test of 95.25.
Bonds ...
30 yr. Bonds... Sept. needs to sustain over 140.22 to extend a rally.
The Dec # looks to be 139.11
FYI...I will be writing and trading off the Sept. into the end of next week.
TLT...put in an ORH day after touching trend support. 117.72 is resistance. Once above look for a test of 118.40.
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FX...
EURO...I'm skeptical that Euro can pick it's head up over 131.77.
I'm placing day orders to sell Euro on a spike at levels that would put in a reversal higher on the point & figure chart and relieve the current oversold condition of the market.
We've had one wiggle of 80 points since the last breakdown @ 136.25
EUR/AUD.... Long term investors should use a Draghi spike to scale into the trade near 142.80 which is weekly trend and the lowest risk level to enter and manage a stop.
Sustained and closing price action below 140.25 after Draghi would mean we're not going to get any love on the Euro shorts.
Commodities...
LHV...104.40 in October Hogs is Fib & weekly trend resistance....this level is an exit for zone longs the first time up and a low risk sell level with a very tight stop for those looking for a wiggle back down.
General Comments orValuable Insight
In the words of John Wayne "let's get to the rat killing"
The Equities (to be determined)..we're at a crossroads. Many instruments have been living in their own instrument specific technical momentum bubble.
Today into tomorrow we'll see if the bubble will lose some air or yesterday was another one day sell off.
Sometimes when things go vertical all you can do is put in a trailing stop, and keep raising that stop until the dance ends.
I have no idea whether or not we can get to the levels to sell Euro.
This is more of a lottery trade for the professional Currency trader.
This is an event trade so there will not be a stop put forth until the dust settles.
You could try selling it after the fact but there is no way I could get the trades out fast enough for you to execute in a timely fashion.
Retail traders...it's one of those times that you need to pay attention if you're interested in this trade.
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