August 14, 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 12.50 level on the VIX continues to act as a key support level.

Since moving under 12.50, the VIX has recaptured it and stalled at 16.28 two days ago.

Then the VIX dropped and closed at 13.49 yesterday.? Watch where the VIX opens and use the resistance levels to help you determine the direction of the market.

And watch how the VIX reacts against the support and resistance levels.

Also, if you look at a weekly chart for the markets, they are forming doji's, which means the close is close to the open.

The point here is this ... with all the volatility the markets have had this week,? they are ending the week at around the same price level they started.

This action is what ends up taking your money.

Be smart and use the VIX levels to your advantage.

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

With the VIX closing at 13.06 yesterday, a retest of 12.50 would be expected.

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
Major level - 2,062.50

The active objective is 2,093.80, because the S & P closed above 2,082 yesterday.

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
Minor level - 109.77
Major level - 109.38

The QQQ did take out the 110.94 level and closed at 110.34.

111.16 was yesterday's high and I mentioned resistance should be at 111.33.

Lower levels should act as support.

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 has pulled back a bit after hitting the 125 level.

At this point, the lower levels should act as support.

Short term timeframes remain in uptrends.

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 could not close above 107.03 yesterday.
106.25 should act as support.

XLE:

Major level -? 75 ?
Minor level - 74.21
Minor level - 72.66
Major level - 71.88
Minor level - 71.09
Minor level - 69.53
Major level - 68.75
Minor level - 67.96
Major level - 65.63
Major level - 62.50

The XLE closed at 69.49, just under the 69.53 level.
It will still need two closes above 69.53 to move up to 71.88.

Apple:

Apple closed at 115.15 yesterday, so the objective is up to 118.75.

Major levels for Apple are 125, 118.75, 112.50 and 106.25.

Watch list:
Bullish Stocks:? PCLN,? MLM, GD, STZ, HON, STZ, NFLX, TSO, ADBE, VLO, CLX, RAI, ALK

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

Be sure to check earnings release dates.