December 9, 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
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The November buyback report is now posted in the members area.? Also, at 12:00 today, we will have our bi-weekly webinar.? I hope to see you then.? The webinar will be recorded and posted in the members area, if you cannot attend live.
The S & P 500 closed down 13.48 yesterday at 2,063.59, just above the 2,062.50 support level.
The VIX closed above the 17.19 level, at 17.60.
For the markets to head up, you want to see the VIX fail at a resistance level and head down.
If the VIX opens higher, look for 18.75 to be resistance.
I mentioned the selling climaxes setting up in the pipeline stocks.? On today's webinar, I will show a few charts of what I meant.
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
With a close above 17.19 yesterday, I am still biased for a retest of 18.75.? If the VIX opens lower, then I would expect 17.19 to act as resistance.
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
Major level - 2,031.30
The S & P 500 is just above the 2,062.50 level, which should act as support.
Two closes above 2,070.33 and the S & P should retest 2,093.80.
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 should act as support.
If 114.85 holds as support, I would expect a retest of 115.63.? 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 is holding around the 121.88 level.
For the TLT to move up, it will need two closes above 122.66.
Lower levels should act as support.
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 will need to close above 103.13 for it to move higher.? Not yet worth the risk.
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 close under 61.72 yesterday.? It closed at 61.60.
A close today under 61.72 and the XLE should test 59.38.
This market is in a bonafide crash and one to avoid.
Having said that, some oil stocks are having selling climaxes, which tells me that investors are throwing in the towel.?
This makes me want to look at this sector.
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 is still sitting at the mid band on the daily chart.?
Same as yesterday ...
If it cannot get get above the midband, I expect a pullback.
Watch list:
Bullish Stocks: GOOGL, PANW, ULTA, COST, NFLX, DY, FSLR, ACN, LLY, EXR, CLX, QIHU, CRM
Bearish Stocks: CMG, CBRL, SRCL, PVH, UNP, AXP, AKAM, CAR, BIG, HAIN, FOSL
Be sure to check earnings release dates.
