July 14, 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

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Today's Working Orders

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The markets continues their upward assault yesterday after news of a settlement with Greece.

I contend that the two recent selling climaxes foretold of higher prices to follow.

You see, usually one selling climax is enough to turn the markets, but two is even better.

The other fact about these recent climaxes were the extend of the readings.? Usually, you do not see a reading of 16.70, let alone one of 21.42.

These days represent tremendous capitulation.

As a result, in two days, the S & P 500 is up almost 50 points.

The question now is where should resistance be? ?

Remember to check earnings dates on any trades you plan.
This week a number of the large banks report. NFLX reports Wedneday, after the close and GOOGL reports Thursday, before the open.

Here are the key levels for the markets.

Stocks...
?
VIX: ?

Major level - 18.75
Minor level - 16.41
Major level - 15.63
Minor level - 14.84 - 2 closes under & the objective is back to 12.50.

Yesterday, the VIX closed at 13.90, so a close under 14.84 today and the objective is back to 12.50.

13.28 should act as a support level and 14.84 should be resistance.? 14.06 can also act as minor resistance.

S & P 500 Cash Index: ?

Major level - 2,125.00
Minor level - 2,101.62 - 2 closes above & objective is 2,125
Major level - 2,093.80
Minor level - 2,070.33
Major level - 2,062.50
Minor level - 2,054.68

The 2,093.80 level was achieved yesterday, with the S & P 500 closing at 2,099.60.

2,093 level should act as support.? Look for 2,101 to act as resistance.

Nasd 100 (QQQ):?

Minor level - 110.16
Major level - 109.38
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
Minor level - 105.46

Yesterday's high was exactly 109.38 with a close at 109.61.
108.60 should act as support.

110.16 is the next key level.? Two closes above 110.16 and the objective becomes 112.50.

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
Minor level - 114.84 *

The TLT is back to just above the 115.63 level.
Key short term levels will be 116.41 and 114.84.
Two closes under 114.84 and the TLT should drop to 112.50.? Two closes above 116.41 and it should run up to 118.75.

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 is trying to hold the 110.94 level with a close just above it yesterday at 110.98.

XLE:

Major level -? 75
Minor level - 74.21
Minor level - 72.66
Major level - 71.88
Minor level - 71.09
Major level - 68.75

Two closes under 71.88 and it could drop to around 60.
The XLE continues to try and hold the 75 level.? If would have to reclaim 75 before any signs of bullishness appear.

Watch list:
Bullish Stocks: AMZN, AGN, ORLY, CBRL, EW, DIS, NKE, CELG, DPZ, CME, ACN, UA, FB, EA

Bearish Stocks: CMI, MON, CVX, WDC, Z, GMCR, QCOM, GMCR, SNDK and QCOM