August 6, 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 - Closed with 86% return in one day

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Today's Working Orders

No working orders.

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Let me start by saying thank you to those that emailed me about the almost one day double on WDC.

I appreciate that you were you able to take advantage of that overnight gain.? And if you didn't, do not be concerned because I expect we will have more deals like that.

The ping pong price action continues.

This is where it pays to follow the VIX for the short term movement.

The market continues to bounce around until the Friday Jobs Report.

The VIX stopped yesterday at 10.88, just 6 cents under the 10.94 level and proceeded to rally.

It got back to above 12.50, stopping at 12.72 and eventually settled at 12.51.? Only one cent above the 12.50 level.

At th same time, the S & P gapped up and ran to 2,112.66.
Once the VIX reversed to the upside, you would expect the market to head down and that is what happened.

The S & P dropped from 2,112.66 to 2,097.28.? A drop of 15.38.

Not a bad move it you were long SPY puts.

Tomorrow's Jobs Report should point the way to the next intermediate move.? Until then, trade the minor reversals.

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

The VIX continues to flirt with the major 12.50 level.

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 gave back most the gains yesterday, but managed to close above the 2,093.80 level.

I expect more chop until tomorrow.
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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, the QQQ took out 112.50 and hit a high of 113.

112.11 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

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 almost to the 103 objective.

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 continues on it's way to 63.

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.

Apple is getting the dead cat bounce.

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.