February 10, 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
SFLY - Long Feb $40 Put @ $1.90
SFLY - Long Feb $37.50 Put @ $.65
..............................
The markets are set to bounce this morning before the testimony of Janet Yellen.
The markets are extremely oversold as evidenced by the fact that both the S & P and the NASD Composite are trading under their lower extreme bollinger bands on their respective daily charts.
A bounce here would not be unexpected, however it will most likely be short lived.
I say this for a few reasons.
The first is the fact that yesterday, the S & P 500 closed under the 1,859.62 level for the second consecutive day. This suggests that higher levels should act as resistance, most likely 1,875 and 1,890.
The downside objective is back to 1,812.
The second reason is that the QQQ closed for two days under the major 96.88 level.
This is extremely bearish and suggests that the QQQ could drop as low as 87. This would be a 9% drop from current levels.
Higher levels should act as resistance.
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 VIX closed just under the 26.56 level yesterday, at 26.54.
It would still need two closes above 26.56 for the? objective to be 31.25.
23.44 should act as support.
S & P 500 Cash Index:
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
At this point, 1875 and 1,890 should act as resistance.
Oversold based on the fact that the S & P 500 is under the lower bands on multiple time frames.
Nasd 100 (QQQ):
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 *
Minor level - 96.09
Major level - 93.75
Major level - 90.63
Second close under 96.88. Look for 96.88 and 100 to act as resistance.
TLT:
Major level - 137.50
Minor level - 136.71
Minor level - 132.03
Major level - 131.25
Minor level - 128.91 *
Major level - 128.13
Minor level - 127.34
Minor level - 125.78
Major level - 125.00
The TLT is back above 131.25 and closed at 131.63 yesterday.
It will need two closes above 132.03 to move higher.
Breaking 131.25 sets ups a scenario that it should be retested again after a pullback.
GLD:
Major level - 115.63
Minor level - 113.28 *
Major level - 112.50
Minor level - 111.71
Minor level - 110.16
Major level - 109.38
The GLD did close above 113.28 yesterday. A pullback should stop around 111.70 and no more than 109.
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 - 53.19
Major level - 53.13 *
Minor level - 51.56
Major level - 50.00
Minor level - 43.75
A reversal off of 53.13 should produce a quick up move.
Oversold and due for a bounce.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple keeps holding the 93.75 level. And it is bouncing off the lower band.
Apple is set to bounce this morning. Holding the lower band on the daily chart.
Watch list:
Bullish Stocks: SAFM, FXE, WEC, AEP CMS, ED, PNW, ACC
Bearish Stocks: TSLA, BWLD, ALXN, MNST, PII, BIDU, VRTX, SWK, GILD, LAD, HAR, TRIP, BABA, Q
Be sure to check earnings release dates.
