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.
Stocks..
Spu's...resistance starts around 1619 with the mid to high 20's possible over the next
2 days on an overshoot.
Bonds...
30 Yr....resistance is 136.31 followed by 138.15. Any print into the 139 handle is a sell the first time up.
FX...
USD/JPY...closing over 99.20 (100.70-80 Futures) should lead to a lower Yen.
Commodities...
Oil....97.25 was the last qtrly close.
Gold...probed the buy area last night in Asia.
Silver...is the one to watch. When the precious metals go into rally mode Silver
will go up faster than Gold. A close today over 18.93 puts in an ORH day targeting 20 dollars for a start.
General Comments or Valuable Insight
Today you not only have to be aware of technical support & resistance but you must keep in mind where a particular instrument is in relation to where it?closed last qtr.
Markets will be thin and easily pushed around very late in the day.
I.E. the Yen is lower for the past 2 qtr's with 95 USD/JPY being the previous 2 closing levels. Yen is getting marked lower on the crosses as well as the straight dollar.
Silver futures options are not showing a lot more premium to buy calls Oct calls?expiring 9/24/13 vs the Sept expiring 8/27/13.
SLV? ETF options looked cheap going out a month for the 20 dollar strike when I looked last night.
We'll let this play out for a while going into London's close and see if we can come up with a cheap look for some upside.
Short Term View...
Trade what is in front of you. Don't fight the flow!
Time to be a technical trader and robotic ally trade the extremes. Forget the fundamentals.
Pay close attention to your time frames and ebbing capital flows.
For Glossary of terms and abbreviations click here.