August 24, 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 sell off continued Friday with the S & P 500 down almost 65 points Friday.? And it should continue this morning.

Pre market, the S & P 500 futures are down over 65 points.

The VIX was up almost 50% Friday, closing at 28.03.
And most certainly will be up this morning after the open.

I am still putting together the report I mentioned Friday.
I should have it by mid week.

Friday was the first day in this sell off with a selling climax.
The down to up volume was over 17 to one.

If we have a series of selling climaxes, there should be a decent technical bounce.

As for the question as to whether we are entering a bear market, that is what the special report will address.

Friday I was without internet access virtually the whole day.
I hope you faired better.

Here are the key levels for the markets.

Stocks...
?
VIX:?

Major level - 31.25
Major level - 28.13
Major level - 25.00
Major level - 18.75
Major level - 15.63

This sell off started with the VIX around the 12.50 level and has seen it run up to over 25 in two weeks.

There are two keys for the VIX at the moment.
The first is the 31.25 level.

A violation of that level and the VIX should head higher.
It could run up the 40's.

The other key is that the VIX is above the top extreme bollinger band on the daily chart.? And on the weekly chart, it is almost at the top band.

When the reversal happens, the bounce back could be fairly strong.

S & P 500 Cash Index:?

Major level - 2,000.00
Major level - 1,968.80
Minor level - 1,960.98
Minor level - 1,945.33
Major level - 1,937.50
Minor level - 1,929.68
Major level - 1,906.30

1,968.80 was the key level, which most certainly will be violated this morning.? Two closes under 1,968.80 and the objective would be down to 1,850 to 1,875.

Nasd 100 (QQQ):?

Major level - 106.25
Major level - 103.13
Major level - 100
Major level - 96.88
Major level - 93.75

96.88 is a key level for the QQQ.? Two closes under 96.88 and the objective becomes 88.

TLT:?

Major level - 131.25
Major level - 128.13
Minor level - 125.78
Major level - 125
Minor level - 124.22
Minor level - 122.66?
Major level - 121.88

Major level - 118.75

The TLT has had two closes above 125.78, so the active objective is to 128.13.

Short term timeframes remain in uptrends.

GLD:

Major level - 115.63
Major level - 112.50
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

The objective is 112.50.? The GLD had two closes above 110.16.

Lower levels should act as support.

XLE:
?
Minor level - 69.53 *
Major level - 68.75
Minor level - 67.96
Major level - 65.63
Minor level - 64.85
Major level - 62.50
Minor level - 61.72
Major level - 59.38

Two closes under 61.72 and the objective becomes 59.38.

Apple:

Apple hit the 106 area I mentioned Friday.

Major levels for Apple are 106.25, 100, 93.75 and 87.50.
100 should be a major support level for Apple.? If that cannot hold, it could drop to around the 75 level.

Watch list:
Bullish Stocks:? WCG, CMS, BLDR, SCMP

Bearish Stocks: FDX, BIDU, IBM, MMM, CMI, RL, DDS, UNP, ASML, WYNN, DECK, XLE, FOSL,QCOM, SCTY

Be sure to check earnings release dates.