August 5, 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
WDC - Long Weekly Options
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Today's Working Orders
No working orders.
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The ping pong price action continued yesterday with the S & P 500 forming an inside day.? In fact, all the major markets had that price formation.
That tells me that the breakout or breakdown will be rather large.? Or you would at least expect a larger move than normal.
The VIX continued to bounce off the 12.50 level yesterday, which gave you multiple opportunities to short the indexes.
I have decided to add the levels for Apple, given that it is a closely followed stock.
Here are the key levels for the markets.
Stocks...
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VIX: ?
Major level - 17.19
Major level - 15.63
Major level - 14.06
Minor level - 13.67
Minor level - 12.89
Major level - 12.50
Minor level - 12.11
Major level - 10.94
Yesterday, the VIX closed at 13, so a close today above 12.89 and the VIX should move up to 14.06.
Watch where the VIX opens.? A lower open and expect the levels to the upside to act as resistance.
A higher open and the levels should be support.
S & P 500 Cash Index: ?
Minor level - 2,132.82
Major level - 2,125.00
Minor level - 2,117.18
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 S & P closed at 2,093.32 or about 50 cents under the major 2,093.80 level.
2,201.60 and 2,085.98 should be the most relevant resistance levels.
Reversals down on the VIX are the triggers to go long.
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
Major level - 109.38
Yesterday's low in the QQQ was 110.93 or one penny under the support line.
110.16 should be support.
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
Two days ago was the first close above 122.66. ?
Yesterday, the TLT dropped down and closed at 122.57, so expect the TLT to bounce.
I suspect you will not a meaningful move in the TLT until Friday.
GLD:
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 starting to trade sideways as it sets up for a bottom.
The objective should still be to 103.
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
The XLE broke under the 68.75 level again yesterday.
Sell against resistance levels.
Apple:
Major levels for Apple are 125, 118.75 and 112.50.
Yesterday, was the second close under 118.75, so the objective is down to the 100 to 103 area.
Sell any rallies at this point.
Watch list:
Bullish Stocks:? GOOGL, REGN, AMZN, PNRA. PANW, BWLD, AMGN, GD, MNST, NKE, SKX, DIS, CVS, RAI, NKE, V, SBUX, GIS
Bearish Stocks: BIDU, RL, IBM, CVX, BG, CVX, Z, CAT, EOG, DECK, XLE, LNG, UA, TWTR
Be sure to check earnings release dates.