January 28, 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 continue to limp along the lower bands.
And the S & P could not close above the 1,890 level yesterday.
Any rallies are quickly met with more selling pressure.
The only positive for the markets is that the 1,875 level seems to be holding as support.
Having said that, to move up, the S & P will need two closes above 1,890.62. If it can do that, the objective becomes 1,937.
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
The VIX did close under 23.44 yesterday, so I would expect a retest of the 18.75 level.
This could finally signify the anticipated bounce in the markets is forthcoming.
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
1,875 has been strong support for the S & P 500.
If the VIX drops, look for the markets to head higher.
We still need two closes above the 1,890.62 level for a move higher.
The S & P is back under the lower extreme band on the daily. Still oversold.
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
A close today under 100.78 and the QQQ should retest 100.
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
Look for lower levels to act as support.
The 128 level remains the active objective.
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 objective should be to 109.38. This sets ups a scenario where the long term downtrend maybe over
if the 109 level can be hit on this drive.
Gold is starting to become relevant again.
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
The XLE did hit the 56 level yesterday, before pulling back.
Like gold, if the XLE can hit the 59 area, the downtrend maybe over.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple sold off almost 7% on their earnings yesterday.
And yesterday was the first close under 93.75.
If it closes under that level today, it could move down to the 75 area.
Very oversold at the moment and a bounce would be expected.
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.
