July 17, 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

GOGO? Long at $19.93
Sell to Open 7/17-$20 Call at $.30

?.......................................................................................

Today's Working Orders

No working orders.

?.......................................................................................

Today is the expiration day for the July monthly options.

And we have one position that expires today and that is the short $20 call on GOGO.? With GOGO closing yesterday at $19.99,? just one penny under the strike, I suggest you wait and let's see where it closes today.

If it closes above $20, then your calls will be assigned and you will sell your shares at $20.

A close under $20 will mean that you keep your shares.

In either scenario, you book the profit on the call you sold.

If an adjustment is required, I will email you separately.

As for the market, you probably know that the S & P 500 is within 1 point of the 2,125 objective I have been calling for.

And the VIX is back to under 12.50.

What is next for the markets?

The next major level is 2,132.82 and that is where the market failed back in May.? This should be the second attempt to get through it.? A minor pullback at that level would not shock me.

The short term, 60 minute chart for the S & P is close to moving into an uptrend.? When that happens, all timeframes will be back in uptrend formations and we should see a nice move up.

As for earnings, NFLX had a strong move yesterday and it looks like GOOGL will today.? GOOGL is up almost $80 pre market.

These are stocks to focuse on intra day.

Here are the key levels for the markets.

Stocks...
?
VIX: ?

Major level - 15.63
Minor level - 14.84
Minor level - 13.28
Major level - 12.50
Minor level - 11.71

The VIX is back to under 12.50.? A bounce here would not be unexpected.

Two closes under 11.71 and the VIX should drop to 9.40.

S & P 500 Cash Index: ?

Minor level - 2,132.82
Major level - 2,125.00
Minor level - 2,101.62
Major level - 2,093.80
Minor level - 2,070.33
Major level - 2,062.50

Within 1 point of objective.

Nasd 100 (QQQ):? .

Minor level - 113.28
Major level - 112.50
Minor level - 110.16
Major level - 109.38
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
Minor level - 105.46

The objective is to 112.50 level.

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 *

Objective is 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

Gold is oversold.? It is flirting with the 109.38 level.
A break under 109.38 and gold goes lower.

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.? It would have to reclaim 75 before any signs of bullishness appear.

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

Bearish Stocks: CLB, EOG, KLAC, QCOM, APA, SNDK and QCOM