January 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
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The fragility of this market continues. After bouncing up from oversold conditions last week, the markets
reversed and closed back to the downside yesterday.
The main concern is that the S & P 500 closed back under the lower band on the daily chart. That price level is 1,888.62 and the S & P closed at 1,877.08.
The key support level is around 1,860, so the market is about 17 points from it.
1,860 is also right around the downside confirming level, which is 1,859.38.
The implications of 1,859.38 is that if the S & P 500 closed under that level for two days, the objective would be back to 1,812.50.
If the market can firm up around that level, it should bounce up.
The XLE continues to be a drag on the markets. Since hitting the objective of 56.25, the XLE sold off yesterday and hit the 53.13 support line.
The support level for the XLE based on last week's weekly price bar should around 52.80. If that cannot hold, look for a move back to 50.
Tomorrow at 12:00 EST is our bi-monthly webinar. I hope to see you there.
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 reversed and closed at 24.15 yesterday.
To move up to 31.25, it will need two closes above 26.56.
A failure at 26.56 and the markets should head up.
S & P 500 Cash Index:
Major level - 2,000.00
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
Watch the 1,860 level today. If that cannot hold, look for a move back to 1,812.50.
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
The QQQ sold back off under the 103.13 level.
A close today under 102.35 and it should test 100 again.
The 100.50 area should be support from the weekly price bar. If that cannot hold, and it breaks under 100, look for a move to 97.
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
A close today above 125.78 and it should retest 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
Almost back up to the 106 level.
If the GLD can hit 109 on this drive, I would begin to think that the downtrend is coming to an end.
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
Still struggling to find support. Looks like it wants to retest the bottom band on the daily, which is 51.52.
Main support level is 50.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple reports today after the close. A close today under 98.44 and it should test 94.
Very close to the bottom band on the daily chart again.
Watch list:
Bullish Stocks: ISRG, ED, WCN, BXLT, T
Bearish Stocks: LNKD, IBM, 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.