December 30, 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

????????????????????????????????? ? ???????????????????????????? Entry????????? ? Stop???????????????????? TGT

LONG? JJG?????????????????????????????????????????? 38.21?????????? 38.60 Intra-day? 42.00

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Today's Working Orders

No working orders.

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Stocks...

IWM...an ORH month seems a lock. A close tomorrow over 120.97 puts in an ORH qtr. to fill out the pattern.

KBE...put in an ORH day. 33.95 is the Monthly ORH #. 34 is the qtrly ORH #.

The banking sector is prime to get bid up over the next 2 trading days.

Bonds ...

30 yr. Bonds... 144.28-30 starts resistance.

145.06 is fib resistance and the upside pivot for another 20 ticks.

Italian 10 yr...is up big today showing a potential ORH weekly pattern.

It might have more legs on the upside.

As a trader it could be a good momentum play, as an investor I'd rather be in U.S. securities.

FX...

EURO....the next set of sell stops are under 120.42, the 2012 low.

USD/JPY...Yen is seeing some strength this A.M. with a weaker Nikkei.

118.60 (84.35 Futures) remains macro dollar support and the closing pivot for Yen strength.

EUR/JPY...has to get under 144.90 +- a few to elect a big profit taking rally in the Yen before year end. I don't see this happening, however you need to keep this cross front & center if you're trading the above dollars.

Commodities...

OIL...54 is resistance and the upside pivot. Price action and a close over 56 is needed to get excited about the long side.?

WTI could weaken toward 49 into year end markings as long as rallies to 54 fail.

Brent...could go into the 56 dollar level before year end. Price action and a close over 60.60 resistance is needed for upside.

Natgas...sustained price action over 3.19 can lead to a test of 3.35-38.

General Comments or Valuable Insight

Trade the Flow and the opening ranges again today.

Oil is the easy commodity to push into year end.

U.S. Equity Indices can be a very sloppy trade until late tomorrow, when they can get priced for year end markings on light volume.

Bonds will remain bid benefiting from both a flight to quality from offshore investors and the Dollar carry trade. In short, Any break will hold into year end.?

For Medium Term Outlook click here.

For Glossary of terms and abbreviations click here.

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