December 31, 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 - $1.95
Short Jan 8th-$21 Call - $.40

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 - $1.05
Short Jan 8th-$13.75 Call

P Long $13.38
Short Jan $14 Call - $.35
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As we close out the last trading day of 2015, once again you see the see saw battle between the bulls and the bears.

After climbing almost 22 points on Tuesday, the market gave back 15 points yesterday.

The close yesterday was just above the major support level of 2,062.50. However, the S & P failed to close above 2,070.33, so it will need two closes above that level to move up to 2,093.

The S & P 500 is very close to ending the year where it began, which was 2,058.90.

Today should be a rather slow day in the markets.

I want to wish you and your family a very Happy New Year! I will see you again in 2016!

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

The VIX closed just above 17.19 yesterday, at 17.29.

It will most likely try and retest 18.75. A failure at that level and the VIX should drop.

S & P 500 Cash Index:

Minor level - 2,101.16
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

2,054 should be support. Also, minor support at 2,047.

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 close at 113.27 yesterday, just a penny under the minor support level.

The implication is that support is still at 112.50, however the QQQ will need two closes above 113.28 to move up.

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

Look for support at 119.53 and the TLT 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 continues to trade between 100 and 103. The 60 minute chart has moved into an uptrend.

100.78 should be support.

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 is back to retest the 59.38 level. I would expect more consolidation before a meaningful move in the XLE.

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 could not close above 107.81 yesterday, so look for a move lower.

Watch list:
Bullish Stocks: PNRA, NOC, CI, KMB, ACE, ADBE, DPS, PM, QIHU, BRCM, ALTR, CCL, TSN, DAL, RAI

Bearish Stocks: CMG, COO, RH, PVH, ODFL, JWN, WSM, DECK, OUTR, WNR, HIBB, BKE, NTAP, SWFT

Be sure to check earnings release dates.