September 6, 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.

Today comes down to one thing, which is the unemployment # @ 7:30 CDT. The day will be a price action trade based off the data.

Follow the Bonds for they will lead the Currencies.

If the Bonds go big the Euro and Yen should initially rally with them.?A Bond break and the Euro and Yen will be weak.

30 yr. (SEPT)...there are resting buy stops @ 131.16 with 131.23 first resistance. We've had a qtrly front month tgt level of 129.10?for a long time. Look for a reaction off this level the first time down.

Metals...a number that the equity markets deem "positive stocks" will have investors selling the metals looking for yield in the equities.

Gold...rallies to 1400 should be faded with a very tight stop of 4-5 dollars. 1343 should be an early extreme on the downside.

Today's pain trade would be an initial big sell off in the bonds followed by a move back higher on the day forcing out all the shorts.

I.E. new Sept contract lows followed by a move higher on the day.

Reversals...today and the Fed meeting in 2 weeks are the most likely times for possible trend change in the Bonds. Reading and responding to the price action will be key to a successful trading day.

For Glossary of terms and abbreviations click here.

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.