February 26, 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
..............................
Had a couple of responses yesterday as to where the objective should have been for the S & P after stopping at 1,890.86.
They ranged from 1,911 to 1,980.
The objective should have been back to the 1,921.88 level.
On Tuesday, the S & P 500 closed at 1,921.27 or 61 cents under the level.
That would mean that a close on Wednesday under that level would push the market down to 1,875.
On the rally up to 1,937.50 on the 22nd, the market actually took out that level and hit a high of 1,946.
Because it broke the level, you can generally expect a retest of that level again.
Also, because the S & P got back above the 1,921.88 level, the bearish set up is invalidated.
The next level on the upside to watch is 1,953.12.
Two closes above that level and the objective is to 2,000.
If you have any questions, you can always 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 is almost down to the 18.75 level.? It closed yesterday at 19.11.
The VIX may get a bounce off 18.75, so watch that level.
I do think longer term, the VIX hits 12.50.
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
Back above 1,937.50.? The S & P will need two closes above 1,953.12 to confirm a move up to 2,000.
Short term support should now be at 1,937.50 and 1,929.70.
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's closed back above 103.13 yesterday, at 103.56.
Two closes above 103.91 and the objective is up to 106.25.
Support 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 is trying to hold the 131.25 level.? It is overbought and sitting up against the extreme bollinger band on the daily.
A pullback here would not be out of the question.? I would like to see it sell off the 134 level before initiating a short.
GLD:
Major level - 121.88 *
Minor level - 121.10
Minor level - 119.53 *
Major level - 118.75
Minor level - 117.96
Minor level - 116.41
Major level - 115.63
Minor level - 113.28
Major level - 112.50
121.88 is a major level and one I think would be tough to get through on the first attempt.
That would be the area to nibble on a short trade.? Like the TLT, the move up has been too fast.
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 would need two closes above 57.03, to move up to 59.38.
The XLE continues to base between the 53 and 59 levels.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Look for a move up to 100.? 100 remains a key level for Apple.
Watch list:
Bullish Stocks: KMB, TLT, CLX, NEE, RNR, GOLD, PM, SAFM, EW, PG, ATO
Bearish Stocks: BIIB, GS, SIG, VRX, JACK, CERN, PANW, VRSK, ALNY, CERN, AIG, AGU, BG, SOHU, XL??
Be sure to check earnings release dates.