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 GS 25%?? ? ? ? ?????????? 158.10 ???? 154 Close
Long IBM 25% ????????????????? 174.50 ???? 169 Close
Long VIX 25% ????????????????? 14/16 call sprd ? ? ? ?40
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Today's Working Orders...
Buy?TLT?@ 105.40 with a 104.40 Sell Stop On Close GTC?"Good Till Canceled"
Buy?30 yr. Dec Bond Futures @?133.00 with a 132.00 Sell Stop On Close GTC.
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Stocks...
Spu's...use 1730 as the near term pivot.
Bonds...
30 Yr. Bonds...support start @ 133.07-132.28. This would be a good area to buy before you sell. 135.00 is weekly closing resistance.
FX...
AUD/JPY....stays firm as long as it maintains above 94.30 which will act as the downside pivot. If you're a raging equity Bull this is the place to try a Long with a 30 point stop.
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Commodities...
Crude...will be in play tomorrow into Wednesday.
General Comments orValuable Insight
Anytime the Vix has gone into the 12's on an overshoot, institutional players have used it to buy cheap portfolio insurance. Of course it can go lower, however I don't think we'll get hurt running the small 14/16 call spread for a couple of days.
Names with earnings coming out will be the place to look for opportunity.
Short Term View...
Individual stocks look to be an easier read based off their own technical s. The Equity Indices seem stretched at these levels.
The one market I was looking at buying as a surrogate to the U.S. was Mexico (EWW). It has not held up making me reticent to be chasing strength in the U.S.
Either the U.S. has come too far or Mexico is mispriced
The Nikkei has more allure than the Spu's.
Go with the flow. Use the 9/30 closes as your macro pivots. Trade the opening ranges and early time frames.
Take what the market gives you.
For Glossary of terms and abbreviations click here.
