February 4, 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 S & P 500 stopped at the 1,875 level yesterday, which also happens to be the lower bollinger band set to the extreme settings.
It ended up reversing on the day and forming a hammer bar.
Pre open the S & P 500 is down around 8.50 points.
Based on the price bar for yesterday, support should be around 1,892.
To confirm an intermediate bottom, ideally you would want to see a close about yesterday's high, which is 1,918.01.
It bears mentioning that the GLD hit a high of 109.58.
If you recall, I felt that if the GLD could hit 109.38 on this drive, it is quite possible a long term bottom could be forming.
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
Minor level - 17.19
The VIX spiked up to a high of 27.70 yesterday before dropping and closing at 21.65. A close today under 23.44 confirms a move back down to 18.75.
The 23.44 and 25 levels should act as resistance.
S & P 500 Cash Index:
Major level - 2,000.00
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
A close today above 1,890.62 and the objective should be up to 1,937.50.
Lower levels should act as support. Trigger to go long is to see the VIX reverse to the downside off a? resistance level.
Nasd 100 (QQQ):
Major level - 106.25
Minor level - 105.47
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
102.35 is still a key level for the QQQ. It will need to close above it today for the QQQ to move higher.
A close under 102.35 set the stage for a move down to 100.
TLT:
Major level - 131.25
Minor level - 128.91 *
Major level - 128.13
Minor level - 127.34 *
Minor level - 125.78
Major level - 125.00
Minor level - 124.22
Minor level - 122.66
The TLT spiked up to a high of 129.94 yesterday before closing at 127.95.
The TLT would need two closes under 127.34 to move down to 125.
If the TLT can close above 128.13 for a few days, it is possible to see a move up to the 137 area.
Lower levels should act as support.
GLD:
Minor level - 111.71
Minor level - 110.16
Major level - 109.38 *
Minor level - 107.03
Major level - 106.25
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
The 109.38 major level hit yesterday. A pullback at this point should NOT go farther than 106.
To move higher would require two closes above 110.16.
Lower levels should act as support.
XLE:
Major level - 59.38
Minor level - 58.60
Minor level - 57.03
Major level - 56.25
Minor level - 54.69 *
Minor level - 51.56
Major level - 50.00
Minor level - 43.75
The XLE stopped at 54.11 yesterday before rallying up to 57.30.
A close today above 57.03 and the XLE should hit 59.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple reversed off the lower band yesterday and I suggested a small position for a bounce.
Will monitor to see if that happens.
Watch list:
Bullish Stocks: KMB, STZ, MCD, DLR, ATO, ED, FSLR, PNW
Bearish Stocks: TSLA, BWLD, ALXN, MNST, PII, BIDU, VRTX, SWK, GILD, LAD, HAR, TRIP, BABA, Q
Be sure to check earnings release dates.