January 22, 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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As the mid Atlantic states brace for their first serious storm this winter, the markets finally appear to be getting the bounce I have been looking for.
Pre open, the? S & P futures are up over 26 points as I write this.
And oil is popping as well. But I did say yesterday that the XLE was sitting right at a key support level, so this is not too much of a shock.
It appears that the 200 ema, along with the major support level of 1,812.50, will act as the support level for this sell off.
The 200 ema on the weekly chart is 1,812.44 and the low for this week is 1,812.29.
This should begin a multi day rally in the markets. Look for alerts to take advantage of this move.
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 - 18.85
Minor level - 17.19
The VIX did close under 29.68 yesterday, so the objective should be back to 25.
Yesterday, the VIX dropped to 25 before it bounced,
Higher levels should act as resistance.
S & P 500 Cash Index:?
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
Minor level - 1,765.62
Major level - 1,750.00
Minor level - 1,734.38
Lower levels should act as support. I still want to see a close above the lower band on the daily chart.
We will retest this level in the future, but stay long until the next reversal.
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
A close today above 100.78 and it should head up to 103.
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 closed above the minor 125.78 level yesterday.
125 should be support.
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 would have to hit 109 for me to think that this long term downtrend is over.? This is where the GLD needs to go for the major downtrend to even be considered over.
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
I did mention yesterday that the XLE was sitting on major support levels and it bounced nicely.
Before getting too excited about this rally, for the XLE to form a major bottom, it would need to move to around 59 on this rally.
If it can do this, it is possible this major downtrend is over.? If it can't expect more back fill.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Still under the bottom band on the daily.??
Very oversold.? A buy on a close above 97.60 could produce a fast pop.
Same as yesterday.? Waiting for a close above the bottom band.?
Watch list:
Bullish Stocks: ISRG, ED, HR, LEI
Bearish Stocks: LNKD, BWLD, GS, GD, FLT, UHS, CELG, CP, RL, FFIV, GRA, HAR, AGU, CXO, UNP, XOM, SWKS, IBM and too many to mention
Be sure to check earnings release dates.