August 12, 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

GOGO? Long at $19.93
Premium collected - $1.25

NCR Long Jan 15 $27 Call
NCR Short Jan 15 $32 Call
Net Debit - $1.70

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The volatility continues with the market giving back just over 20 points yesterday.? Pre market, the market is set to sell off more.

At this point, the S & P 500 has not traded above the high of last week, nor below the low.

The high was 2,112,66 and the low 2,067.91.

These levels are important because I would expect further movement in the direction of the violation.

I will outline the major support levels below, but once again the VIX has bounced up from the 12.50 level.

Here are the key levels for the markets.

Stocks...
?
VIX: ?

Major level - 17.19
Major level - 15.63
Minor level - 14.45
Major level - 14.06 *
Minor level - 13.67
Minor level - 12.89
Major level - 12.50
Minor level - 12.11
Major level - 10.94

Resistance should be at 14.45 and 14.06.
Support at 12.50.

If the VIX gets through 14.06, expect the lower levels to act as support.

S & P 500 Cash Index: ?

Minor level - 2,132.82
Major level - 2,125.00
Major level - 2,109.40
Major level - 2,093.80
Minor level - 2,089.90
Minor level - 2,082.00
Major level - 2,078.10
Minor level - 2,074.20
Major level - 2,062.50

2,078 still remains as a key level of support.
A break under that price, and expect further movement to the downside.

Where the S & P opens will help to confirm the next minor move.

Nasd 100 (QQQ): ?

Major level - 115.63
Minor level - 113.28
Major level - 112.50
Minor level - 112.11
Minor level - 111.33
Major level - 110.94
Minor level - 110.16
Major level - 109.38

The QQQ closed just under the 110.16 level yesterday.? Next major support level is 109.38.

TLT: ?

Minor level - 125.78
Major level - 125
Minor level - 124.22
Minor level - 122.66 ?
Major level - 121.88
Minor level - 119.53 ?
Major level - 118.75
Major level - 115.63

The TLT achieved the 125 level yesterday, with a high of 125.13.? It settled 25 cents under 125.

Minor resistance should be at 125.78 and support should be at 121.88.

GLD:

Major level - 109.38
Minor level - 107.03
Major level - 106.25
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
Minor level - 102.34
Major level - 100

The GLD closed just above 106.25 yesterday.
105.46 should be support.

107.03 should be minor resistance.

XLE:

Major level -? 75 ?
Minor level - 74.21
Minor level - 72.66
Major level - 71.88
Minor level - 71.09
Major level - 68.75
Minor level - 67.96
Major level - 65.63
Major level - 62.50

The XLE had a close above the 68.75 level yesterday.
Two closes above 71.09 and the objective becomes 71.88.

67.96 should act as support.

Apple:

I mentioned the $119 area as a decent place to get short.
Apple topped at $119.99 two days ago and gave back $6.23 yesterday.

The downside objective for Apple should be around $100.

Watch list:
Bullish Stocks:? PCLN, REGN, MLM, GD, STZ, NFLX, EXPE, KMB, CLX, HON, RAI, ALK

Bearish Stocks: IBM, RL, DDS, UNP, CVX, Z, DECK, XLE, FOSL,QCOM, GMCR

Be sure to check earnings release dates.