February 18, 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
..............................
The snapback rally continued yesterday with the S & P 500 coming within seven points of the 1,937.50 objective.
The market closed to the upside just over 31 points.
This is starting to have the feel of a major bottom forming.
If the S & P 500 can hit or exceed 2,000 on this drive, I would feel that a major bottom has formed.
At this point, the next key level should be 1,953.12.
That is the level to confirm a move up to 2,000.
The shorter term charts are starting to move into uptrend formations.? The 30 minute chart is very close to moving into an uptrend for the S & P.
This is what you would expect to see as the move gains some momentum.
Earnings releases have produced some nice moves this week.? PCLN ended up closing up almost $125 off their earnings.
And FOSL was up 28.5%.
?
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 had it's first close yesterday under 23.44.
It closed at 22.31.
A close today under 23.44 and it should drop to 18.75.? If this happens, it should confirm further upmovement in the markets.
25 and 23.44 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
Objective is to 1,937.50.? The minor 1,953 level should act as resistance on the first test.
1,921 should act as support.
Nasd 100 (QQQ):?
Major level - 106.25
Minor level - 105.46
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 QQQ closed at 102.50, or 63 cents under the 103.13 level, which is the objective at this point.
Two closes above 103.91 and it should move up to 106.25.
Support should be at the lower levels, namely 102.35 and 100.
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
128.13 should be a strong level of support for the TLT.? The TLT is just above the 128.13 support level.
If this can hold, a run to 134 would be the objective.
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
The GLD sitting right around the 115.63 support level.
If this can hold, I would expect a move up the 122 area.
XLE:
Minor level - 60.16
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
If the XLE can close above 57.03 today, the objective should be up to 59.38.
56.25 should act as support.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple is within $1.50 of the 100 level.
Watch how Apple reacts around $100.? If it gets through $100, it should try and reach $106.? If it fails, it will retest the bottom band.
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.