August 3, 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 - $.70
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Today's Working Orders
No working orders.
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Friday is the release of the Non Farm Payroll at 8:30 EST.
This should be a closely watched report and is capable of producing excess volatility for the markets.
Since stopping at the 2,132.82 level on July 10th, the S &P 500 dropped back to a point above the 2,062.50 level.
The market then rallied up and has had two closes above 2,101.62.
Even with Friday's pause, the S & P managed to close at 2,103.84.
At this point, the active objective for the S & P is 2,125.
The major concern continues to be the fact that the VIX is back to under the 12.50 level.? Friday, the VIX closed at 12.12, just under the key level of 12.50.
If the VIX can stay under 12.50, the markets should head up to the objective.
Here are the key levels for the markets.
Stocks...
?
VIX: ?
Minor level - 16.02
Major level - 15.63
Major level - 14.06
Minor level - 12.89
Major level - 12.50
Major level - 10.94
The VIX is back to the major 12.50 level.? This has been a major support level for a long time.
A bounce here would not be unexpected.
Watch where the VIX opens.? A lower open and expect the levels to the upside to act as resistance.
S & P 500 Cash Index: ?
Major level - 2,156.30
Minor level - 2,132.82
Major level - 2,125.00
Minor level - 2,101.60
Major level - 2,093.80
Minor level - 2,085.98
Minor level - 2,070.32
Major level - 2,062.50
The objective is to 2,125.? Buy against support. ?
Nasd 100 (QQQ):?
Major level - 115.63
Minor level - 113.28
Major level - 112.50
Minor level - 110.16
Major level - 109.38
Minor level - 107.03
Major level - 106.25
The QQQ is within a penny of the 112.50 objective.
If it clears 112.50, look for some minor resistance at 113.28.
TLT: ?
Major level - 125
Minor level - 122.66? *
Major level - 121.88
Minor level - 119.53? *
Major level - 118.75
Minor level - 117.96
Minor level - 116.41
Major level - 115.63
The TLT closed Friday at 122.53, or .65 above the 121.88 level.
Two closes above 122.66 and the objective becomes 125.
GLD:
Major level - 112.50
Major level - 109.38
Minor level - 107.03
Major level - 106.25
Minor level - 103.91 *
Major level - 103.13
Minor level - 102.34 *
Major level - 100
The objective should be to 106.25.
The GLD formed a doji bar on the weekly chart last week.? This means indecision.? The next move should be in the direction of today's open.
XLE:
Major level -? 75 ?
Minor level - 74.21
Minor level - 72.66
Major level - 71.88
Minor level - 71.09 *
Major level - 68.75
Minor level - 67.96 *
Major level - 65.63
At this point, we may not get the rally back to the 75 level.
If the XLE breaks under 68.75, the move down could be sharp.
Watch list:
Bullish Stocks:? REGN, AMZN, AGN, AMGN. PANW, BWLD, GD, MNST, NKE, SKX, DIS, CVS, RAI, NKE, V, SBUX, GIS
Bearish Stocks: BIDU, RL, CVX, BEN, DDS, CVX, Z, CAT, EOG, DECK, XLE, LNG, UA, TWTR
Be sure to check earnings release dates.