February 22, 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
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All markets ended the week with strong weekly price bars.? The NASD market led the way, with almost a 4% gain for the week.
Both the S & P and the DOW were up almost 3% for the week.
And it looks like the markets will follow through this morning, with the markets set to open higher.
The shorter term 30 minute chart for the DOW & S & P have already crossed up into uptrends.? The NASD Composite and the QQQ are very close to doing the same thing.
The 60 minute charts are still in downtrend formations, but are moving into? position to cross up into uptrends.? If that can happen, then all time frames will be in uptrends and the upmove should continue higher.
Watch the key strategic levels to help confirm if this move should continue higher.
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 objective for the VIX is down to 18.75, so it should not be a surprise to see it close down 1.11 Friday, at 20.53.
There is a minor support level at 20.31 and if it can get below that, it should continue on down to 18.75.
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
Upside objective is still to 1,937.50.
1,953 should be resistance the first time up there.
2,000 is the major level to watch.? If the S & P can hit 2,000 on this drive, it is quite possible that a major bottom is in place.
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
103.13 should be the objective for the QQQ.
100.78 and 100 should act as support.
TLT:?
Major level - 137.50
Minor level - 136.71
Minor level - 135.16
Major level - 134.38
Minor level - 133.60
Minor level - 132.03
Major level - 131.25
Minor level - 130.46
Minor level - 128.91
Major level - 128.13
The TLT closed Friday at 131.01 Friday, just under the 131.25 level.? A close today under 131.25 and the TLT should drop to 129.
128.13 should be najor 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
The 115.63 level should be strong support for the GLD.? A violation of this level and expect the GLD to drop to around 109.
This upmove has been fast and a correction would not be out of the question.
Having said that, the long term averages on the daily chart are close to moving into an uptrend formation.? This has not happened in a long time.
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
The XLE is trying to hold the 56.25 line.? If it can, look for a move up to 62.50.
To move lower, it will need two closes under 54.69.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
The $100 level should still act as resistance for Apple.? Watch how it reacts around that level.
Watch list:
Bullish Stocks: PNRA, CLX, MKC, DLR, AWK, TSN, MO, RAI, DF, GDOT, ATO, K, PNW
Bearish Stocks: AGN, TSO, JACK, CERN, BG, BERY, BERY, NUS, WNR, CVI
Be sure to check earnings release dates.
