August 18, 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
Total Premium collected - $.70

FCX Long $12.45
Premium collected - $.24

..........................................................................................

The market was quite volatile yesterday, as expected, with the release of the FOMC minutes.

The S & P 500 opened at 2,177.84 and promptly dropped to a low of 2,168.50 before moving up to close at it's high, at 2,182.22.

The VIX peaked at 13.71, before dropping and closing at 12.19, just under the 12.50 level.

With the short term charts for the S & P 500 in uptrend formation, a rally yesterday would be anticipated.

And that is what happened.

This morning, the markets are set to open slightly lower.

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 stalled at 13.71 yesterday, just under the 14.06 level.

Minor resistance should be at 12.89.

On the downside, minor support should be at 11.33.

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

The market stalled just under the 2,171.88 level. The low for the day was 2,168.50, or about 3 points under the support level.

Minor levels should be 2,175.80 and 2,183.60.

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

Like the S & P 500, the QQQ reversed and closed at 117.26.

The low for the day was 2 cents above the 116.41 minor level.

Look for 116.80 to be minor support and 117.97 to be minor resistance.

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

A close today above 138.28 and the TLT should try and test 140.63.

139.06 should now be minor support.

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 held above the 128.13 level, closing at 128.50.

Two closes above 128.91 and the GLD should try and move up to 131.25.

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 69.57, just four cents above the 69.53 level.

A close today above 69.53 and the XLE should move up to 71.88.

69.14 should be minor support.

The 60 minute chart has moved into an uptrend, so expect further movement to the upside.

Apple:

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

Apple got as low as 108.34 before reversing to the upside.? That was about 50 cents above the 107.81 support level.

Watch the 109.38 level.? If Apple can get above that level, expect it to act as support.

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
?
Be sure to check earnings release dates.