August 25, 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

?.......................................................................................

The sell off continued Monday with the S & P 500 closing down over 77 points on the day.

And yesterday saw the VIX move up and peak at over 50 before settling on the day at 40.54.

Pre market, the S & P 500 futures look to be getting a bounce from this oversold condition and are up about 65 points.

As I mentioned yesterday, the down to up volume on Friday was 17.32.? Yesterday, it measured 41.08.

That is the highest level I can ever recall.? So, a bounce here is not unexpected.

Another technical condition I need to point out is this.

All major markets are well below their lower extreme Bollinger Bands on their respective 60 minute charts.

And all of the major markets breached their lower Bollinger Bands on their daily charts.? And both the DOW and the S & P 500 actually closed under their lower extreme Band, while the NASD had the ability to remain above it.

This is a highly unusual event and one that has not happened during this entire bull run.

Here are the key levels for the markets.

Stocks...
?
VIX:?

Major level - 50.00
Major level - 43.75
Major level - 37.50
Major level - 31.25
Major level - 25.00
Major level - 18.75

Look for 43.75 to act as resistance and head down.
If it breaks 43.75, look for a retest of 50.

S & P 500 Cash Index:?

Major level - 2,000.00
Major level - 1,968.80
Major level - 1,937.50
Major level - 1,906.30
Minor level - 1,882.83
Major level - 1,875.00

Watch how price reacts around the key levels.
1,986 is the lower extreme band on the 60 minute chart for the S & P 500.? On the daily chart it is 1,907.

There maybe resistance at these levels.? A close above them would be bullish.

Nasd 100 (QQQ):?

Major level - 106.25
Major level - 103.13
Major level - 100
Major level - 96.88
Major level - 93.75
Major level - 90.63

90.63 should be strong support.? Lower band on the 60 minute chart is 103.02.? You would like to see the QQQ close above this level.

On the daily, it is 91.89, which should act as support.

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 achieved the objective of 128.13 and closed under it yesterday, at 126.36.? 125 should be support.

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 GLD came within a point of the 112.50 objective yesterday.

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
Major level - 56.25

The XLE hit the 59.38 level yesterday. A move under 56.25 and expect the XLE to head lower.

Apple:

Major levels for Apple are 106.25, 100, 93.75 and 87.50.
100 should be a major support level for Apple.?

93.75 is a key level for Apple.? Two closes under that price and Apple could drop to around 75.

Apple is also under it's extreme Bollinger Band on the 60 minute chart, which is 104.77.

Watch list:
Bullish Stocks:? PANW, ULTA, MNST, CELG, COST, MA, AMBA, EA

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

Be sure to check earnings release dates.