December 10, 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
Total Premium collected - $1.25
Short December $20 Call - $.30
NCR Long Jan 16 $27 Call
Net Debit - $.80
X Long at $14
Total Premium collected - $.89
ASNA Long at $14.20
Total Premium collected - $.75
LUK Long December $18 Call - $.35
ETE Long $14.05
Short December $15 call - $.30
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The S & P 500 closed down almost 16 points yesterday and had an intra day range of over 40 points.
This market is looking more and more like topping action.? And on yesterday's webinar, I laid out specific levels that should act as major resistance and pressure points.
Perhaps the nail in the coffin will be when the Fed raises rates next week.? At least that is the general consensus of what they will do.
The VIX got as high as 20.13 yesterday, stalling just under the 20.31 level.
If the VIX stalls here and heads down, expect the markets to continue up.
As for the S & P 500, there is a minor support level at 2,046.90.? And if the S & P 500 closed under that level for two days, I would expect a drop to the 2,000 - 2,015 level.
Here are the key levels for the markets.
?
VIX:?
Minor level - 26.56
Major level - 25.00
Minor level - 23.44
Minor level - 20.31 *
Major level - 18.75
Minor level - 17.19
Minor level - 14.06
Major level - 12.50
17.19 should now act as support.? There is a minor resistance level as 21.88.
Watch where the VIX opens for a clue as to the short term direction.
S & P 500 Cash Index:?
Major level - 2,125.00
Minor level - 2,101.62
Major level - 2,093.80 *
Minor level - 2,085.98 *
Minor level - 2,070.33
Major level - 2,062.50
Minor level - 2,054.68
Minor level - 2,039.10
Major level - 2,031.30
Minor support level at 2,046.90.? Two closes under that level and expect a drop.
Nasd 100 (QQQ):?
Minor level - 116.41 *
Major level - 115.63
Minor level - 114.85
Minor level - 113.28 *
Major level - 112.50
Minor level - 111.72
Minor level - 110.16
Major level - 109.38
112.50 support level should hold.? Yesterday's low was 112.20 before the QQQ rallied back to close at 112.89.?
112.50 should still be major support.
TLT:?
Major level - 125
Minor level - 124.22
Minor level - 122.66
Major level - 121.88
Minor level - 121.09
Minor level - 119.53 *
Major level - 118.75
Minor level - 117.97
Minor level - 116.40
Major level - 115.62
The TLT is holding around the 121.88 level.
For the TLT to move up, it will need two closes above 122.66.? Same scenario as yesterday.
A failure as 121.88 and the TLT could drop to 113 - 115.
GLD:
Major level - 106.25
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
Minor level - 102.34
Minor level - 100.78
Major level - 100.00
Major level - 96.88
The GLD is still stuck in the 100 - 103 range.
If it bases for a some time down here, a bottom could be forming, but it needs more time to base.
XLE:
Minor level - 67.97
Minor level - 66.41
Major level - 65.63
Minor level - 64.85
Major level - 62.50
Minor level - 61.72 *
Major level - 59.38
The XLE did pop up above 62.50, but could not close above that level.
It would still need two closes under 61.72 to move down and two closes above 64.85 to head up.
However, it has been basing in oversold territory for four months now, as opposed to the GLD.
Apple:
Major levels for Apple are 125, 118.75, 112.50, 106.25, 100, and 93.75.
106 should be a major support level for Apple.?
Apple sold off yesterday and closed one penny under the 115.63 level.
Objective should be back to 112.50.
Watch list:
Bullish Stocks: GOOGL, NOC, ULTA, RTN VRSN, DY, DPS, ALK, TEVA, GIS, TSN, T, EDU
Bearish Stocks: CMG, COO, SRCL, PVH, UNP, AXP, AKAM, CAR, BIG, HAIN, FOSL
Be sure to check earnings release dates.