December 24, 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

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
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Before I begin today's update, I want to wish you and your family a very Merry Christmas and Happy Holiday Season!

As a reminder, the markets close today at 1:00 EST and they are closed tomorrow.

If you did not get assigned on the VNR calls, please be aware that I will continue to track the stock and will issue an alert to exit the position at the appropriate time.

I am aware that some people were not assigned and still hold the stock.

The pipepline stocks, as I had mentioned, were way oversold and are getting the expected bounce.

For the week, ETE is up almost 26%. And that is not the only one experiencing a sharp bounce.

ETP is up almost 20% and KMI is up over 8%.

The markets continued their run yesterday, with the S & P 500 closing up over 25 points.

The S & P 500 closed just above the 2,062.50 level,
at 2,064.29.

The VIX continued it's slide, closing just under 15.63, at 15.57.

The rally in oil has been one of the drivers of this move. The XLE is just under the 62.50 level, closing at 62.13.

I mentioned that the XLE should not break the 56.25 level on it's first attempt. The XLE got as low at 58.21 before this recent bounce.

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 still be resistance.? The objective should be back 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 2,062.50 level was hit yesterday.? 2,054 should act as support.

Minor resistance at the 2,070 level.

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 112.50 objective was hit yesterday.

Lower levels should act as support.

Two closes above 113.28 and the next objective becomes 115.63.

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 under the 121.88 level, at 121.50. It will need two closes under 121.09 to move down to 118.75.

It 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

The GLD closed at 102.31 yesterday.? A close today under 102.34 and it should retest 100 once again.

I would expect this consolidation between 100 and 103 to continue for a while longer.

XLE:

Minor level - 63.28
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 will need two closes above 63.28 to move up.? 61.72 should be 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 above 107.81 and Apple should move up to 112.50? Starting to look attractive.

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.