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
Long BAC 14 March 18 Call???????????????????????????????? .11
Orders are "stop on close" unless stated otherwise
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Today's Working Orders
No working orders.
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Stocks...
Spu's...(H) show a possible head & shoulders top on the daily chart.
A close lower on the year ( below 1841) is needed to confirm the pattern.
Nasd (H)...3661 is support and the downside pivot. Once below 3610 ( the 50 day mvg avg) is possible.
For technical purposes, March is still lead contract until the end of today.
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Bonds...
Bund (M)....sell stops are below 142.07
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FX...
NZD/USD...85.00 is support and the downside closing pivot.
AUD/USD...90.00-10 is support and the downside closing pivot.
EURO...137.80 (+- 10 ticks) is support and the downside closing pivot.
Below 137.18 is next. This is a cover zone for any shorts the first time down.
USD/JPY...101.90 is short term resistance (app 98.14-20 Futures)
Commodities...
Copper...trapped all the shorts not paying attention to the macro levels.
Moreover they screwed the players listening to mainstream media and unable to read a chart.
Copper can still break, however it does not pay to press @ the absolute worst level in an extremely oversold instrument.
Once 2.95 is closed under for a couple of sessions there will be lower targets that are generated.
For technical purposes, March is still lead contract until the end of month.
Gold...not only were the shorts jammed in Copper, but the Long Gold leg of the spread was unwound as well. Investors were Long Gold/Short Copper.
1328 is closing support.
Below, expect a test as low as 1299.
1299 is major mvg avg support, the confluence of the 50 & 200 day mvg avg.
Closes below this level can open the way to 1265.
Silver...20.50 is the qtrly pivot. Good above/negative below.
Corn...4.82-80 is mvg avg support. By holding here, Corn can rally 20 cents.
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General Comments orValuable Insight
Today into tomorrow Futures and Options expire in the Equity Indices, Bonds and Oil.
All week we've seen "opening range" day trading opportunities across a wide array of instruments.
Looking for the home run?
Think about how many times you've sen these same levels in different instruments over the past 3 months.
Be happy hitting singles right now.
Those trading should take their profits when they have them at technical or tgt levels, paying strict attention to the instrument traded.
Follow through has been fleeting. The DJI is down on the year, S&P 500 barely higher.
Keep some perspective!!
Equity Indices have gone up almost every qtr since 2011. Equities can digest for a while, making the trade a short term lemming effect nite-mare.
Simply put, what looks great one day (or in one time frame) will be refuse the next.
It's really easy to get out of step. Right now you can be right the market and miss the trade by 12-24 hours.
Those trading options can be right the direction and still lose money.
There will be a lot of players looking to buy cheap premium ( Lotto Tickets) for leverage going into qtr end. The direction seems irrelevant.
Cash is King for Long only Equity investors.
Opening Range Time Frame Trading again today.
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Short Term View...
Keep trading to make money. The opportunity will be in individual names.
Individual stocks look to be an easier read based off their own technical s.
We are Neutral Equities.
We've included our medium term view from the beginning of the year so you can get a sense of what's happened and where the markets are now.
January, 2014 MediumTerm Outlook-1st-qtr-2014/
For Glossary of terms and abbreviations click here.
