August 20, 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
NFLX Long Aug 21 -$125 Call
NFLX Long Aug 21 - $127 Call
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On yesterday's webinar, I was asked how to trade around a marketwide news announcement like the release of the Fed Meeting minutes.
I explained how to garner a directional bias using the VIX as a leading indicator and explained specifically what I would be looking for.
In addition, I explained the instruments that are best suited for trading these types of marketwide announcements.
If you took advantage of what I shared yesterday, shoot me an email at davismdt@gmail.com and let me know what you traded.
I like to see what different instruments everyone trades.
Yesterday there was actually a decent move off the release of the Fed meeting minutes.? The past few announcements have been rather tepid.
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 on the VIX should be at 15.63.
Major support at 12.50.
S & P 500 Cash Index: ?
Major level - 2,109.40 *
Minor level - 2,105.50
Minor level - 2,097.70
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
Minor level - 2,058.60
The S & P closed just above the 2,078.10 level yesterday.? Support should be at 2,074.20.
Look for the VIX to reverse to the downside for long entries.? If the VIX continues to the upside expect further selling pressure.
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 closed bac under the 110.94 level yesterday.
Look for support at 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 continues to test the 125 level.
For the TLT to continue higher, it will have to close above 125.78.
Short term timeframes remain in uptrends.
Should be volatile today.
GLD:
Minor level - 110.16
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 is on it's way to 109.38.
For a trend change, I would need the GLD to reach the 113 area on this drive.
XLE:
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 broke down under the 68.75 level.
As I have mentioned before, I was anticipating a move up to the 72 - 75 area a great place to get short the XLE.
We are not getting that opportunity.
The XLE should most likely start to settle in the 62 to 65 area.
Apple:
Apple started to sell off yesterday.? It should try and test the 106 area.
Major levels for Apple are 125, 118.75, 112.50 and 106.25.
Watch list:
Bullish Stocks:? GOOGL, LMT,? BWLD, MLM, GD, STZ, VRTX, BA, FLT, NFLX, MA, ADBE, CLX, RAI, ALK
Bearish Stocks: FDX, BIDU, IBM, MMM, RL, DDS, ASML, Z, DECK, XLE, FOSL,QCOM, GMCR
Be sure to check earnings release dates.
