December 23, 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 - $1.55
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
ETE Long $14.05
Total Premium collected - $.30
...........................................................................................
The markets continued to bounce yesterday with the S & P 500 closing up almost 18 points on the day.
The VIX continued to drop along with the bounce.
The VIX closed at 16.60, which means that a close today under 17.19 and the VIX should try and retest 12.50.
Not much news at the moment.? And we are at the tail end of this earnings season.? The next season begins January 11th, with Alcoa reporting
Here are the key levels for the markets.
?
VIX:
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 be resistance and if the VIX closes under that level, expect a move down to 12.50.
However, 15.63 and 14.06 have been strong support for the VIX.
S & P 500 Cash Index:
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 level - 2,023.48
Minor level - 2,007.82
Major level - 2,000.00
Minor level - 1,992.18
The S & P took out the 2,031.30 level, closing just under 2,039.10, at 2,038.97.
Two closes over 2,039.97 and the objective becomes 2,062.50.
2,031.30 should be support.
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 was within 13 cents of the 112.50 objective.
Lower levels should act as 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 stopped 11 cents above the 121.88 support level.
If will now need two closes above 122.66 to move back up.
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
As I said yesterday, if the GLD could close above 103.13 for two days, I may get excited about some miners.
I also said that the last two times it closed above 103.13, it failed.? Make that now the third time, with the GLD closing at 102.61.
I would expect this consolidation between 100 and 103 to continue for a while longer.
XLE:
Major level - 62.50 *
Minor level - 61.72
Minor level - 60.16
Major level - 59.38
Minor level - 58.60
Minor level - 57.03
Major level - 56.25
The XLE bounced up and closed above the 59.38 level.
For the move to continue, the XLE will need two closes above 60.16.
58.60 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.
Two closes above 107.81.? Support should be at 106.25.
Watch list:
Bullish Stocks: NTES, CI, ULTA, DPS, ADBE, KMB, FSLR, QIHU, ELS, NTES, TRIP, K, EXR, LLY
Bearish Stocks: CMG, COO, HAR, UNP, TIF, CMI, WDC, CXO, DKS, CMI, BLUE, KEX, BURL, OUTR, CF, CLH, WES
Be sure to check earnings release dates.