October 25, 2016 - MDT Pro Tips A.M.
MDT AlertWhile 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.
GOGO? Long at $19.93
Total Premium Collected? $1.95
ASNA Long at $14.20
Total Premium Collected $.75
DUST Long $4.50
Total Premium Collected? $.70
FCX Long $12.45
Total Premium Collected? $.24
DYN Long at $12.55
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Yesterday, the S & P 500 closed 10.17 points to the upside at 2,151.33.? This took out last week?s high by about 8 points.? The high of 2,148.44 should act as support.
The move up certainly is no surprise as our objective is back up to the 2,187.50 level. But, the technical level I consider resistance, which is 2,152 to 2,155, has not been exceeded as of yet.
The S & P 500 is sitting right at the mid band on the 60 minute chart, which is 2,152.25.? Clearing this level would be bullish, as it often acts as resistance as price approaches it from below.
The other technical condition that would be bullish is if the short term intra day charts move into uptrend formation. Both the 30 minute and 60 minute charts have had their long term averages flatten out, which is a precursor to a bullish crossover.
The major negative is that the VIX is getting down to its long term support level of 12.50. It closed yesterday at 13.07, so it is within 60 cents of that major support line. I don?t have to remind you how many times the VIX has jumped when it got to that level.
Pre open, the S & P 500 is set to open about 2.75 points to the upside.? Assuming it does open higher, it should clear the 2,152.25 level, which would mean that lower levels should offer support on a pullback.
After the close today, we will get earnings from Apple.? Depending upon their report, it could impact the overall market tomorrow.
Finally, you should have your profit on the KR position from yesterday.
Continue to monitor the levels for entry points.
Here are the Key Levels for the Markets:
$VIX:
Major level - 18.75
Minor level - 17.96
Minor level - 16.41 *
Major level - 15.63 *
Minor level - 14.85
Minor level - 13.28
Major level - 12.50
Minor level - 11.72
The objective should still be back to 12.50.? 13.28 is a minor resistance level. If 13.28 is taken out, I would expect 14.06 to offer resistance.
11.72 should be support.
$SPX:
Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12
Major level - 2,187.50
Minor level - 2,171.88
Minor level - 2,140.62 *
Major level - 2,125.00 *
Minor level - 2,109.38
Minor level - 2,078.12
Major level - 2,062.50
2,148.40 should offer minor support.? And 2,156 should be resistance. If the S & P can clear 2,156, expect it to head higher.? Objective is still back to 2,187.50.
QQQ:?
Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75 *
Minor level - 117.97 *
Minor level - 116.41 *
Major level - 115.63 *
Minor level - 114.84
Minor level - 113.28
Major level - 112.50
The QQQ managed to not only close above 118.75, but it closed above 119.53.? It closed at 119.57, which would mean if it closed above 119.53 today, the objective should be to 121.88.
Lower levels should offer support.? Namely, 117.97 and 118.75.
TLT:?
Major level - 137.50
Minor level - 136.72
Minor level - 135.16
Major level - 134.38
Minor level - 133.60
Minor level - 132.03 *
Major level - 131.25
Minor level ? 130.46
Minor level ? 128.91
Major level ? 128.13
Objective is still back to a retest of 134.38.? The TLT continues to consolidate between the 131.25 and 134.38 level.
132.81 is a minor support level and if the TLT holds at this level, it should move up.
GLD:
Minor level - 124.22
Minor level ? 122.66
Major level ? 121.88
Minor level ? 121.10
Minor level ? 119.53 *
Major level ? 118.75
Minor level ? 117.97
121.88 should continue to offer resistance.? Objective should be down to 118.75.
XLE:
Major level - 75.00
Minor level - 74.22
Minor level - 72.66
Major level - 71.88
Minor level - 71.10
Minor level - 69.53 *
Major level - 68.75 *
Minor level - 67.96
Minor level - 66.41
Major level - 65.63
69.53 should continue to offer support and the objective should be back to 71.88.? 70.31 should offer minor resistance.? 69.73 could be the buy point.
The XLE still remains in uptrend formation on the short term charts, so expect a rally.
FXY:
Major level: 96.88
Minor level: 96.49
Minor level: 95.70
Major level: 95.31
Minor level: 94.92
Minor level: 94.14
Major level: 93.75 *
Minor level: 93.36
Minor level: 92.58 *
Major level: 92.19
Minor l
evel: 91.80
Minor level: 91.02
Major level: 90.63
Support should still be at 92.19.? But, if the FXY breaks under 92.19, expect lower lows.? 93.75 should be resistance now.
AAPL:
Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.
Apple broke out and closed at 117.65. Objective is to 118.75.? Momentum remains bullish, but with Apple reporting tonight, wait for the results.
WATCH LIST:
Bullish Stocks: GOOGL, NTES, GS, CXO, BA, MA, FANG, SWKS, MSFT, AKAM
Bearish Stocks:? REGN, KMB, CLX, TSCO, CTSH, WTR, RH, CREE
Be sure to check earnings release dates.
