January 12, 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
NCR Long Jan 16 $27 Call
Net Debit - $.80
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
Short Jan 8th-$13.75 Call
P Long $13.38
Short Jan $14 Call - $.35
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The markets are getting the anticipated dead cat bounce this morning, with the S & P 500 up in the pre market over 20 points.
This is coming right on the 1,906.30 support level from yesterday.
In fact yesterday, the S & P 500 hit a low of 1,901.10, before rallying to close at 1,923.67.
The significance of a close at 1,923.67 is that if the S & P 500 can close above 1,914.13 today, it should try and test 1,937.50.
The markets have been tremendously oversold as witnessed by the fact that all major markets traded under their extreme bollinger bands on their respective 60 minute charts.
Even with the late day rally, they still closed under their lower levels.
If the markets can regain these levels today, this bounce could be strong, and most likely fast.
Alcoa reported last night with a slight beat.? Earnings season has begun.
Here are the key levels for the markets.
?
VIX:?
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 - 18.85
Minor level - 17.19
The VIX spiked up to a high of 27.39, which was the upper extreme bollinger band on the daily chart, before reversing to the downside and closing at 24.30.
The VIX would need two closes under 23.44 to drop to 18.75.
20.31 should be support.
S & P 500 Cash Index:?
Minor level - 1,976.52
Major level - 1,968.80
Minor level - 1,960.88
Minor level - 1,945.33
Major level - 1,937.50
Minor level - 1,929.68
Minor level - 1,914.13
Major level - 1,906.30
The 1,906 objective was hit yesterday.
A close today above 1,914.13 and the objective should be to 1,937.50.
Resistance should be at 2,000 and 1,968.
Nasd 100 (QQQ):?
Major level - 109.38
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
Minor level - 105.47
Minor level - 103.91
Major level - 103.13
Major level - 100.00
103.13 objective hit yesterday.? The QQQ dropped to 102.73 before reversing to close back above 103.13, at 104.33.
A close today above 103.91 and the QQQ should try and test 106.25.
TLT:?
Major level - 125
Minor level - 124.22
Minor level - 122.66
Major level - 121.88
Minor level - 121.09
Minor level - 119.53
Major level - 118.75
Minor level - 117.97
Minor level - 116.40
Major level - 115.62
Support at 121.88 held yesterday, with the TLT hitting a low of 121.86.
For the TLT to move up, the TLT would need two closes above 122.66.
Two closes under 121.88 and the TLT should drop to 118.
TLT has been range bound around the 121.88 support level for about just over a month now.
GLD:
Major level - 109.38
Minor level - 107.03
Major level - 106.25
Minor level - 105.46 *
Minor level - 103.91
Major level - 103.13
Minor level - 102.34
Minor level - 100.78
Major level - 100.00
Since bouncing off the 106.25 level, the GLD has pulled back.
A close today under 105.46 and the GLD should drop to the 103 level, which should be strong support now.
XLE:
Major level - 59.38
Minor level - 58.60
Minor level - 57.03
Major level - 56.25
Minor level - 54.68 *
Minor level - 51.56
Major level - 50.00
Two closes under 54.68 and the XLE should drop to 50.
The XLE closed at 54.85, or 17 cents above the 54.68 level.
It is trading just above the lower extreme band on the daily chart, which is 53.93.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
106.25 should be resistance at this point.
Apple is getting a bit of a bounce here, along with the rest of the market.? It looks like today it will close back inside the lower band on the daily chart, which is 98.97.
Watch list:
Bullish Stocks: STZ, EXR, DLR, MO, BXLT
Bearish Stocks: CMG, FDX, UHS, AAPL, ZBRA, CFR, WSM, RL, KEX, JWN, RY, MGA, KORS, RH
Be sure to check earnings release dates.