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....?
No Current positions
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Today's Working Orders...
Looking to Buy Appl?after the opening today,?a confirming Trade Alert
will be sent.
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Stocks...
Spu's...the break and hold has the potential to take us to the original tgt of 1820
SSO...94.90 is support. We're still looking for a tgt of 102
Nasd 100...sustaining and?closing above 3416 projects another 100 points higher.
TBT...77.80 is first support.
EWA...MCSI Australia shows support @ the 200 day Mvg avg @ 25.50.
AAPL...put in an ORH day yesterday with a close over 520.42.
SNE...Sony...I just viewed their latest TV for 10K. Nice...The $500 device to watch select movies in the high pixel technology is disappointing.
Seriously, the device was the size of half a basketball. Have their Dim Witted engineers even seen an Apple T.V.? Truly frightening!
Now you know why it can't keep it's head above the 200 day @ 19.05.
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Bonds...
30 yr. Bonds...131.04 is the weekly ORL#, it's the pivot for the rest of the day. First resistance is @ 131.28.
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FX...
NZD/USD?& AUD/USD...are both getting oversold. Kiwi put in an ORL day on Wednesday, a pattern I passed on.
Commodities...
OIL.., I'd like to sell a rally @ 97.40. 94.00 +- 10 ticks will remain pivotal in the short term.
Gold... Gold needs a full 30 dollar rally off of any low to show bottoming action.
General Comments orValuable Insight
Today I'm featuring the retailers since Thanksgiving and Hanukkah line up at the same time this year.
BBY...Best Buy is putting in a bottoming formation. This should not trade below 38.40 if it's going to rally.
AMZN...as long as this holds 359, this can rally 60 dollars.
SNE... Sony..I just viewed their latest TV for 10K. Nice... However the $500 device to watch select movies in their high pixel technology is disappointing.
Seriously, the device was the size of half a basketball. Have their Dim Witted engineers even seen an Apple T.V.? Truly frightening!
Now you know why it can't keep it's head above the 200 day @ 19.05.
AAPL...this is trying to break out to the upside...I like the 540 calls expiring Dec 27th.
I looked at putting out a trade alert yesterday when the calls were trading around 5.60 offer.
I still think buying the 540's gives you the most bang for your buck.
This is a trading idea to leg a call spread.
Unfortunately yesterday there was little advantage "$1" to spreading the trade into a call spread against the 560's or 580's. You're better off just going naked long the 540's and look to lock in some profits later by turning it into a call spread once the 540 level is hit.
Model trading 101...we had a big mid week shuffle. The trend is up and the low never got low enough to change trend.
Simply put, the Bulls are still in charge.
The mid-week break in the Spu's? has relieved the RSI's (the overbought condition) so the Spu's can achieve the 1820 tgt.
Bonds... just an observation...the trend has been down for a couple of quarters. All the down has been on either the unemployment data or a Fed release. The weeks in between are spent trying to rally to nowhere.
In other words, 2 days out of 30 it breaks huge, the rest of the time it's a miserable trade. Pick your levels..You're more than likely to see them if you're patient.
Fearless leader AKA "John Thomas' has been smoking hot!
He's been all over buying the out of favor sectors.
This is stock rotation 101.
When the RSI's (relative strength index) start trading above 70-75 you need to start looking at the instruments that have been out of favor until they catch up.
Why, because instruments with an oversold or neutral RSI can move faster and farther over a shorter period of time to the upside.
You just witnessed "Obe One" do this with Citigroup.
He bought the laggard and booked a quick profit.
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.
For Glossary of terms and abbreviations click here.