December 16, 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
VNR Long $2.97
Short December $3 Call - $.30
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The markets had a nice bounce yesterday, ahead of the Fed announcement today.
The S & P 500 closed up 21.47 yesterday at 2,043.41.
Pre open, the S & P is up around 11 points, which means it would be within 9 points of the 2.062.50 major level.
Because the shorter term charts are in a downtrend, I would expect a pullback at some point.? Does that happen today after the Fed announcement?
I do not know that, but I do expect a pullback.
The logical levels will be at 2,093 or 2,062.
The VIX will help determine when the markets do pull back.? When the VIX reverses to the upside, the markets will dip.
18.75 should be support for the VIX.? If it reverses to the upside, look for the markets to head down.
Here are the key levels for the markets.
?
VIX:?
Major level - 28.13
Minor level - 26.56
Major level - 25.00
Minor level - 23.44
Minor level - 20.31 *
Major level - 18.75
The VIX dropped yesterday and closed at 20.95.
A close under 23.44 today and it will try and retest 18.75.
Two closes above 26.56 and the VIX should climb to 31.25.? However, watch the 28.13 level to see if it acts as resistance.? I expect strong resistance at 28.13.
S & P 500 Cash Index:?
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 level - 2,023.48
Minor level - 2,007.82
Major level - 2,000.00
A close today above 2,039.10 and the S & P should try and test 2,062.50
Support should be at 2,039.10 and 2,031.
Nasd 100 (QQQ):?
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
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
The QQQ hit the 112.50 objective, hitting a high of 113.28 yesterday.
113.28 also happens to be the next confirming level, so the QQQ will need two closes above 113.28 to move up to 115.63.
The QQQ is reacting nicely off the price levels.
Support should be at 112.50 now.
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 closed at 121.44 yesterday, 44 cents under the major 121.88 level.
If the TLT closes under 121.88 today, it could drop down to 112 to 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 closed at 101.52.? This was the second close under 102.34, so the objective should be back to 100.
Still in a downtrend.
XLE:
Major level - 65.63
Minor level - 64.85
Minor level - 63.28
Major level - 62.50 *
Minor level - 61.72
Minor level - 60.16
Major level - 59.38
Minor level - 59.60
The XLE hit he 62.50 level yesterday, but closed under it at 62.31.
The XLE would need two closes above 63.28 to move up to 66.? 62 should act as support.
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.?
A close today under 110.93 and Apple should drop to 106.
Watch list:
Bullish Stocks: CI, CASY, DPS, FSLR, TSN, ELS, CUBE, PANW, HD, CLX
Bearish Stocks: CP, FFIV, BMRN, PVH, KSU, AXP, DVA, BG, WSM, CMI, BLUE, KEX, AKAM, OUTR, CF, CLH, WES
Be sure to check earnings release dates.
