January 27, 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
KMI Long $14.62
Short January 29 Call - $.42
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The markets bounced up yesterday, with the S & P 500 closing up almost 27 points on the day.
The 1,890 level is key because if the S & PO can close above it today, the objective would be to 1,937.
Also, 1,890 should act as strong support at this point.
The range of this move should be helpful in determining if this correction is over. If the market can move up to 2,000 on this drive, it is possible that this correction is over.
Having said that, I do fully expect a retest of the low at some point in time.
The gold market is actually heating up to the point where it's long term downtrend maybe coming to an end.
If the GLD can hit 109 on this drive, it is very possible the downtrend maybe over.
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
With the VIX closing at 22.50 yesterday, a close today under 23.44 and it should retest the 18.75 level.
Look for higher levels to act as resistance.
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
The S & P 500 never got down to the 1,860 level and bottomed at 1,878.79.
A close today above 1,890 sets up a move to 1,937.50.
The S & P closed back above the lower band on the daily chart.
Lower levels should act as support.
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 closed back above the 103.13 level.
The QQQ should be off this morning based on Apple's earnings, which is off over $3 before the open.
Look for lower levels to act as support.
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
Objective should be to 128. Look for lower levels to act as 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 broke through the 106 level, closing at 107.29 yesterday. A close today above 107.03
and the objective becomes 109.38.
This sets up a scenario where the the long term downtrend maybe 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
Objective should be to 56 and the XLE is very close, closing about a point under it.
It would have to hit 59 to think the downtrend is over.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple is down just over $3 pre market based on their earnings release, $93.75 is still the key level for Apple. Two closes under that level and Apple could drop to $75.
Watch list:
Bullish Stocks: FRT, STZ, REG, ATO, WCN, BXLT
Bearish Stocks: TSLA, PANW, VRTX, COL, PII, XEC, IBM, MLM, EXP, HOG, LUV, SEE
Be sure to check earnings release dates.