August 17, 2016 – 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
Total Premium collected – $1.95

ASNA Long at $14.20
Total Premium collected – $.75

ETE Long $14.05
Total Premium collected – $1.40

P Long $13.38
Total premiums collected – $.70

DUST Long $4.50
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FCX Long $12.45
Premium collected – $.24

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Yesterday sold off ahead of the FOMC meeting minute release today at 2:00 EST.

The S & P 500 closed at 2,178.15 and the VIX shot up and closed at 12.64.

At this point, 2,171.88 should offer support for the S & P.

Short term charts for the S & P 500 are in uptrends, so I would expect a rally.? But, of course, investors will be waiting to hear from the Fed today.

Here are the key levels for the markets.

VIX:

Minor level – 17.96
Major level – 15.63
Minor level – 14.85
Minor level – 13.28 *
Major level – 12.50 *
Minor level – 11.72 *
Minor level – 10.15
Major level – 9.38

The VIX will need to close above 13.28 for two days to move up to 15.63.

14.06 should also off resistance.

Minor levels are 12.89 and 11.91.

S & P 500 Cash Index:?

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

To move up to 2,250, the S & P 500 will need two closes above 2,203.12.? To move down, it will need two closes under 2,171.88.

Look for support at 2,172 to 2,168.

When the VIX reverses to the downside, at a level of support on the S & P 500, that is the signal that the markets should move up.

Nasd 100 (QQQ):?

Major level – 121.88
Minor level – 120.31
Minor level – 117.19
Major level – 118.75 *
Minor level – 117.97 *
Minor level – 116.41
Major level – 115.63
Minor level – 114.85
Minor level – 113.28
Major level – 112.50

A close today under 117.97 and the QQQ should drop to 115.63.

116.60 should be a minor support level. Minor resistance is at 117.38.

TLT:?

Major level – 143.75
Minor level – 142.96
Minor level – 141.41
Major level – 140.63
Minor level – 139.85
Minor level – 138.28 *
Major level – 137.50
Minor level – 136.72
Major level – 134.38

The TLT is almost back to the 137.50 level, which should offer support.

Should be volatile today.

139.06 should be minor resistance.

GLD:

Major level – 131.25 **
Minor level – 130.46
Minor level – 128.91 *
Major level – 128.13 *
Minor level – 127.35 *
Minor level – 125.78
Major level – 125.00
Minor level – 124.22

The GLD bounced up and closed above 128.13.

Minor resistance is at 128.91 and minor support should be at 127.93.

XLE:

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
Minor level – 64.85
Minor level – 63.28
Major level – 62.50

The XLE closed at 69.36 yesterday.? 68.75 should be support now.

Two closes above 69.53 and the XLE should continue up to 71.88.

68.95 should be minor support and 69.92 should offer minor resistance.

The 60 minute chart is close to moving into an uptrend.

Apple:

Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.

107.81 should be support for Apple.

The minor 110.16 resistance level needs to be cleared for Apple to move up to 112.50.?

Watch list:

Bullish Stocks: PCLN, AMZN, ULTA, LMT, AVGO, RTN, IBM, FLT, WAT, GD, LH, CXO, XEC, SLG, EW, ASML

Bearish Stocks:? ATHN, LNKD, GILD, MD, DISH, RDY, WDC, HIG, FSLR, LPNT, CBI
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Be sure to check earnings release dates.