January 15, 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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Today is the expiration of the January monthly options.
And we have two open positions.
The first is the short call on ETE, which should no doubt expire today.? The second position is the long call on NCR, which will expire today.?
The markets had a nice rally rally yesterday with the S & P 500 stopping about 3 points above the 1,875 support level.
The selling climax from two days ago appears to have turned the tide of this market, however this morning all the gains from yesterday have been erased.
The DOW futures are down almost 400 points pre open as I write this.
1,875 should be support for the S & P 500.?
Monday is a holiday for the markets and all markets are closed, which maybe a good thing at this point.
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 closed just under 25 yesterday.? It should pop up this morning.? It will still need two closes above 26.56 to move higher.
The 27.50 area should be resistance.
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
1,875 should be major support.? Also, 1,893 should be a support area for the S & P 500.
If the S & P drops under 1,893 look for the market to move lower.
Nasd 100 (QQQ):?
Major level - 106.25
Minor level - 105.47
Minor level - 103.91
Major level - 103.13
Major level - 100.00
Minor level - 99.21
Minor level - 97.66
Major level - 96.88
100 should be the objective for the QQQ.
If this level cannot hold, a move down to the 90 area or about 10% is possible.
TLT:?
Major level - 128.13
Minor level - 127.34
Minor level - 125.78 *
Major level - 125.00
Minor level - 124.22
Minor level - 122.66
Major level - 121.88
Minor level - 121.09
The TLT is up over 125 pre open.
Two closes above 125.78 and the TLT should move up to 128.
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
The GLD should try and test the 106 area.
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
Minor level - 48.43
The XLE is down almost 4% pre open.
Two closes under 48.43 and the XLE should test 50.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple reversed back down and is trading under $97 before the open.? This puts it back under the lower band on the daily chart.? The weakness continues.
Watch list:
Bullish Stocks: DLR, FAZ, DOG
Bearish Stocks: ADS, BA, WHR GS, GD, FLT, UHS, CP, RL, FFIV, GRA, HAR, AGU, CXO, UNP, XOM, SWKS
Be sure to check earnings release dates.
