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
DXJ????? Long???????????????????? 50 ? ? ?????? 49 ?????????????? 53
APPL??? Long?? ? ? ? ? ? ? ??? 520.70?????? 518
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Today's Working Orders...
No working orders
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Stocks...
AAPL...that's a 6.8% rip in a week. If you bought the DEC 27 540 calls @
$5.60, as many of you said you did, you've now more than quadrupled you're money with a $23.70 close.
Money management time
Sell half the Long AAPL position on the opening. Whether you own the options or just the stock we're taking some money off the table.
Very Long term...as long as we stay above 520 close, I'm looking for AAPL to make new all time highs.
VIX...13.10-12.90 is support. 1428-35 is moving avg resistance and the closing upside pivot.
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Bonds...
30 yr. Bonds...the levels haven't changed.?They could probe into 130.31 on the downside, which is the first support area.
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FX...
GBP/USD...has the best technical formation of any of the major currencies. Pounds have put in an ORH qtr followed by a weekly ORH in early Nov.,now followed by a monthly ORH with a close over 162.65 Friday.
I'm looking at Fib resistance that starts @ 165.74, which is a 30% retrace from the 1972 high to the 1985 low.
Many of the GBP crosses are getting overstretched on the shorter time frame charts including EUR/GBP & GBP/JPY
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Commodities...
OIL...seems sold out at these levels. 92.50 has to hold for a rally to ensue. Oil closing under 89.50 on a monthly basis will signal a new leg lower.
Soybeans...13.20 is support and the downside closing pivot. 13.70 ish is the first tgt.
General Comments orValuable Insight
This is the last big data week before year end.
VIX...it's game on with all the economic releases this week, including a much anticipated RBA ( Royal Bank Of Australia) meeting Tuesday night.
We've seen this before, Fund managers are using the Vix as the preferred way to buy portfolio insurance for a short term squeeze up.
TBT & Bonds...we're canceling our working orders to sell the Bonds and Buy the TBT for a few days.
I'm still looking to sell them, however I'd prefer to wait until tomorrow or Wednesday to make a decision. We can see a lot of volatility this week so I just want to be patient to see how things set up mid week.
Short Term View...
Keep trading to make money. The opportunity will be in individual names.
Less is more this time of year. Be patient, if you miss something it's much better than taking it in the shorts!
Individual stocks look to be an easier read based off their own technical s. The Equity Indices seem stretched at these levels.
Go with the flow. Use the 9/30/13 ( September 30th) closes as your macro pivots. Trade the opening ranges and early time frames.
Your short term pivots are Friday's closes unless stated.
Just ask yourself..is it trading higher or lower on the month?
For Glossary of terms and abbreviations click here.
