February 23, 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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The bull move continued yesterday with the S & P 500 exceeding the 1,937.50 objective by 8 points.
The next level to watch is the 1,953.12 level. Two closes above that level and the objective becomes 2,000.
However, a lot of times when a major level is violated the next short term level can act as resistance. Watch how price trades around that level and if the VIX finds support.
I do want to point out that the S & P 500 is within one point of taking out the prior high, which is 1,947.20.
Yesterday's high was actually 1,946.70 or 50 cents under the high.
A violation of that top would be interpreted as bullish.
Also, I have mentioned that if the S & P can hit 2,000 on this drive, that would also be bullish.
If that can happen, it would set up a scenario where the next pullback after this drive stalls would be a great area to get long.
The DOW has already taken out it's prior high. The NASD Composite and the QQQ are just short of exceeding their prior highs, similar to the S& P.
The 60 minute charts are quite close to crossing into uptrend.? Actually, the DIA has already moved into an uptrend on the short term chart.
When this happens, it will also serve to confirm that further movement to the upside should occur.
As a final comment, tomorrow is our bi-monthly webinar.? If there is anything specific you would like me to address, please feel free to email me at davismdt@gmail.com.
Here are the key levels for the markets.
VIX:
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
Minor level - 14.06
Major level - 12.50
The VIX closed at 19.38 yesterday, just 63 cents above the 18.75 objective.
Resistance should be at 23.44 and 20.31.? To move down to 12.50, the VIX will need two closes under 17.19.
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 of 1,937.50 hit and exceeded.
1,953 should be resistance the first time up there.
Support should now be at 1,937.50 and 1,921.88.
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 took out the 103.13 objective yesterday, closing at 103.28.
It will need two closes above 103.91 to move up to 106.
Support should be at 102.35.
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 popped up to close just under the 131.25 level.
Two closes above 132.03 and the TLT should retest 134.
128.13 should be major 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 GLD is sitting right on the major 115.63 level.
This is a level I would expect to hold as support.? Having, said that, if it can't it should drop to 112.
Two closes above 116.41 and the GLD should move up to 118.75.
Two closes under 114.85 and it should drop to 112.50.
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 had a strong pop yesterday, closing at 58.26.? A close today above 57.03 and the XLE should move up to 59.38.
Lower levels should act as support.
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. Trying to base for a move up to $100.
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.
