June 17, 2015 - MDT Pro Tips A.M.
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 Bill Davis, 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
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This afternoon at 2:00, we will get the announcement from the Fed regarding interest rates.? I expect the market to be rather slow until then.
The past few FOMC meetings have really not produced the kind of volatility we have seen in the past, but perhaps today maybe different.
Straddles or strangles placed before the announcement is usually the best way to trade these events. Instruments to consider could be the SPY, DIA, TLT or the FAS.
On the earnings front, FedEx reported slightly less profits and revenues than expected and is now pre market.
Yesterday, the VIX topped a penny under the 15.63 level I have been calling for the past two days.
On today's webinar I will share how to read these levels and how you can profit with them.
For today, there is a short term support level in the VIX at 14.45.? If the VIX finds support there, the market should pull back.? But, like yesterday, I caution you on booking quick profits if you are trading before the 2:00 Fed announcement.
Stocks...
VIX:? Key levels are 15.63 and 12.50
Above 15.63 is 16.41.
Short term levels:? 14.06 to 14.45
Below 15.63 is 14.85
If the VIX closes today under 14.84, I expect it to drop to 12.50.? This would mean the S & P will continue higher.
S & P 500 Cash Index:? Since holding at 2,072.49 on Monday, the S & P rallied back above the 2,093.80 level, closing at 2,096.29 yesterday.
Support should be at 2,085.98.? On the upside, the key level is 2,101.62.? If the market can close above that level for two days, it should run back to 2,125.
On the first run up, it could act as resistance.
I am biased to the upside, but with the announcement today, you maybe better off waiting until after the 2:00 announcement to see how the market react.? Unless you use a non directional strategy.
If you do trade before the announcement, profits should be booked quickly on any intra day trades.
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Nasd 100 (QQQ): Key levels are 109.38 and 106.25.
Yesterday, the QQQ closed at 108.80.? This was just above the 108.60 resistance level.? The objective should be 109.38.
110.16 is the next key upside level.? Two closes above that level and the objective should be 112.50.? It should act as resistance on the next run.
TLT:? Key levels are 118.75 and 115.63.
The TLT closed above the 118.75 resistance level yesterday at 119.07.? 119.53 should act as resistance.
If the TLT can close above 119.53, it would pave the way to a move to 121.88.
117.96 should act as support.
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GLD: Key levels are 114.06 and 112.50.? The GLD is trading between these levels. ?
Quite frankly, there is nothing about the metals or the miners that even remotely excites me.
What would excite me is if the GLD could close for two days above 114.06.? Or if it broke under 109.? Until then, I will just sit and watch.
XLE: Key levels are 78.13 and 75.
Key levels for the XLE are 77.34 and 75.78. Yesterday, the XLE closed at 77.37, three cents above the 77.34 level. Objective should be back to 78.13.
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Watch list:
Bullish Stocks: NFLX, GS, PANW, ALNY, AMBA, GILD, GD, NKE and MA
Bearish Stocks: CMG, GOOGL, Z, KLAC, CAR, QCOM and WDC