January 8, 2015 - 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
Long August 7th-$20.50 Puts on VXX @ $1.83
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Today's Working Orders
No working orders.
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Yesterday, the S & P 500 had an intraday range of 39.71 points.
The DOW had an intraday range of 327.71 points.
That was the largest range in over a year.
Now, pre market, selling is coming into the markets based on the back and forth negotiations with Greece.
This is why I suggested a small allocation when I issued the alert yesterday on the VXX.
There are a few other note worthy events to mention for this week.
The first is the release of the FOMC meeting minutes this afternoon.? This by itself has the potential to add volatility to the markets.
The second is that Alcoa reports their earning after the close today.? Alcoa unofficially starts the earnings season.
So, in addition to the Greek situation there are a few events that can move the markets.
I will outline the current support levels for the markets, but before I do, I want to remind you that today there will be a webinar at 12:00 EST.
Here are the key levels for the markets.
Stocks...
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VIX: ?
Major level - 21.88
Minor level - 19.53
Major level - 18.75
Minor level - 17.96
Minor level - 16.41
Major level - 15.63
Two closes under 17.96 and objective is to 15.63
Yesterday, the VIX closed at 16.09, so if it closes under 17.96 today, it should drop to 15.63.
Watch the open on the VIX.? If it is below 18.75, expect that level to act as resistance.
S & P 500 Cash Index: ?
Major level - 2,093.80
Minor level - 2,070.33
Major level - 2,062.50
Minor level - 2,054.68 (two closes under 2,054.68 and the objective is to 2,031)
Short term levels are 2,070.32 and 2,078.15
Two closes above 2,070.32 and the objective becomes 2,093.80.? Yesterday, the S & P closed at 2,081.34, so if it closes above 2,070.32 today, it should move up to 2,093.80.
The 2,062.50 level should act as support.
Nasd 100 (QQQ):? .
Major level - 109.38
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
Minor level - 105.46
The QQQ would need a close above 107.03 today to move up to 109.38.
TLT: ?
Major level - 121.88
Minor level - 119.53
Major level - 118.75
Minor level - 117.96
Minor level - 116.41
Major level - 115.63
Two closes above 119.53 and the TLT should move up to 121.88.? 118.75 and 117.96 should act as support.
GLD:
Major level - 114.06
Minor level - 112.89
Major level - 112.50
Minor level - 112.11
Major level - 110.94
Major level - 109.38
The GLD closed yesterday at 110.76, under the 110.94 level.? Resistance is now at 112.50.? A close under 109.38 would imply much lower levels.
XLE:
Major level -? 75
Minor level - 74.21
Minor level - 72.66
Major level - 71.88
Minor level - 71.09
Major level - 68.75
The XLE snapped back yesterday and closed at 74.22,? a penny above the minor 74.21 level.? Support should be at 72.66 and 71.88.
Watch list:
Bullish Stocks: RCPT, DIS, NKE, SWK, DE, FB, EA
Bearish Stocks: CMI, MON, CVX, WDC, SNDK, WDAY, GMCR, SNDK and QCOM
