February 17, 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
KMI Long at $14.82
KMI - Short Feb 19th - $15 call @ $.48
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The markets continued their bounce yesterday with the S & P 500 closing to the upside almost 31 points, at 1,895.58.
More importantly, the S & P managed to close above 1,890.62, so if it can close above that level today, the objective becomes 1,938.
As I have mentioned before, a move to 1,938 would generally be expected off the bottom. The issue is if the S & P can hit 2,000 on this drive.
A move to 2,000 would indicate that a major bottom could be forming.
So, these levels are key at the moment.
Today is the release of the Fed meeting notes, so there could be some excess volatility.
PCLN reported earnings and is up just over $117 pre market.
This is on the heels of a $52 move yesterday.
The market appears to be set to open higher this morning.
Look for support at lower levels.
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
The VIX closed under the 25 level, at 24.11 yesterday.
It will need two closes under 23.44 to move down to 18.75.
25 and 26.56 should be resistance at this point.
S & P 500 Cash Index:
Major level - 2,000.00
Minor level - 1,984.38
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
Minor level - 1,796.88
Yesterday's low was just under the 1,875 level.
And the S & P took out the 1,890.62 level.
A close today above 1,890.62 and the active objective is to 1,937.50.
Support should be at the lower levels.
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
The QQQ closed just above the 100 objective yesterday, at 100.23.
Two closes above 100.78 and it should move up to 103.13.
Support should be at the lower levels.
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 continues to drop from it's overbought condition. The TLT did get above the top band on the daily chart, so it should retest that level at some point.
128.13 should be a strong level of support for the TLT.
GLD:
Major level - 121.88
Major level - 118.75
Major level - 115.63
Minor level - 113.28 *
Major level - 112.50
Minor level - 111.71
Minor level - 110.16
Major level - 109.38
Like the TLT, the GLD is selling off from it's overbought condition.
It did close under 115.63 yesterday, at 114.77.
112.50 should be major support for the GLD.
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
The XLE has bounced since finding support at the 53 level.
For this downtrend to be over, the XLE would need to move up to the 62 area on this drive.
If it falls short, I would expect more consolidation.
This is similar to the S & P reaching 2,000 on this drive.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple continues to bounce from it's oversold condition.
Still expecting the 100 area to be resistance.
Watch list:
Bullish Stocks: PNRA, CLX, MKC, DLR, AWK, TSN, MO, RAI, DF, GDOT
Bearish Stocks: GS, BA, MOB, ASML, TSO, AGU, TEVA, GPI, RHI, LNC, SKT
Be sure to check earnings release dates.
