February 1, 2016 - 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
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
P Long $13.38
Short Jan $14 Call - $.35
..............................
The first month of 2016 closed out with a loss of 5.07% on the S & P 500. This was a loss of 103.70 points.
Not a great start to the new year, that is for sure.
But Friday had the long awaited bounce in which the S & P jumped almost 50 points on the day.
You should have been assigned on the KMI position on Friday. If you were filled at 42 cents on the $15 call options, your return would be 5.47% for four days.
Earnings season is starting with many stocks swing large moves.
Facebook popped over 15% on their earnings last week.
And Tupperware dropped just under 15%.
Look for more moves like these this earnings season.
Here are the key levels for the markets.
VIX:
Major level - 37.50
Minor level - 32.81
Major level - 31.25
Minor level - 29.68
Minor level - 26.56
Major level - 25.00
Minor level - 23.44 *
Minor level - 20.31
Major level - 18.75
Minor level - 17.19
The 18.75 level should be the objective at this point.
Look for higher levels to act as resistance.
23.44 should be resistance.
S & P 500 Cash Index:
Major level - 2,000.00
Minor level - 1,953.12
Major level - 1,937.50
Minor level - 1,921.88
Minor level - 1,890.62 *
Major level - 1,875.00
Minor level - 1,859.38
Minor level - 1,828.12
Major level - 1,812.50
The S & P 500 hit the 1,937 objective on the Friday.
Two closes above 1,953 and the objective becomes 2,000.
The S & P closed back above the lower band on the daily. A retest should occur at some point.
Lower levels should act as support.
Nasd 100 (QQQ):
Major level - 106.25
Minor level - 105.47
Minor level - 103.91 *
Major level - 103.13
Minor level - 102.35
Minor level - 100.78
Major level - 100.00
Minor level - 99.21
Minor level - 97.66
Major level - 96.88
The 103 objective was exceeded on Friday.
Objective should be to 103.
A close today above 103.91 and the objective should be to 106.
TLT:
Major level - 131.25
Major level - 128.13
Minor level - 127.34
Minor level - 125.78 *
Major level - 125.00
Minor level - 124.22
Minor level - 122.66
The TLT is within 27 cents of the 128.13 objective.
Look for interest rates to continue to fall.
GLD:
Major level - 109.38
Minor level - 107.03
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
As I have written before, if the GLD can move up to 109 on this drive, it is very possible the long term
downtrend is over.
Lower levels should act as support.
XLE:
Major level - 59.38
Minor level - 58.60
Minor level - 57.03
Major level - 56.25
Minor level - 54.69
Minor level - 51.56
Major level - 50.00
Minor level - 43.75
Two closes above 57.03 and the objective becomes 59. 59 is a key level. If the XLE can hit 59 it is quite possible the long term downtrend could be over.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple had a strong close above the lower band on Friday.
Still biased to the short side.
Apple could only manage one close under 93.75, which is a very key level.
Watch list:
Bullish Stocks: FRT, STZ, REG, ATO, WCN, BXLT
Bearish Stocks: TSLA, PANW, VRTX, COL, PII, XEC, IBM, MLM, EXP, HOG, LUV, SEE
Be sure to check earnings release dates.
