July 20, 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

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Today's Working Orders

No working orders.

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Friday, the $20 call on GOGO expired when the stock closed down slightly at $19.67.

I would like to see how GOGO opens this morning before an adjustment is made.? Last week formed an inside bar on the weekly chart, so I would expect an expansion this week.

As for the S & P 500, it closed just above the 2,125 objective, at 2,126.64.

The next key level is 2,132.82.? If the S & P closes for two consecutive days above that level, the objective becomes 2,156.

The main impediment is that the VIX is back to under 12.50.

This level has shown to be support for a long time.

The short term, 60 minute chart for the S & P is very 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.

GOOGL ended up closing up almost $98 Friday off their earnings.

This week there are a few companies reporting that have the propensity to make big moves off their earnings.? AMZN is one of them and they report this Thursday.

Here are the key levels for the markets.

Stocks...
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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.? The VIX closed Friday at 11.95, 24 cents above the 11.71 level.

S & P 500 Cash Index: ?

Major level - 2,156.30
Minor level - 2,132.82
Major level - 2,125.00
Minor level - 2,101.62
Major level - 2,093.80

Objective achieved.? Watch the 2,132 level.? It could be resistance on the first attempt to get through it.

A break above it would be bullish.

Nasd 100 (QQQ):? .

Major level - 115.63
Minor level - 113.28
Major level - 112.50
Minor level - 110.16
Major level - 109.38
Minor level - 107.03
Major level - 106.25

Objective of 112.50 has been achieved.? Friday, the QQQ closed at 113.59.? A close today above 113.28 and the objective becomes 115.63.

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 of 118.75 was achieved Friday.? Next level is 119.53.

GLD:

Major level - 112.50
Minor level - 112.11
Major level - 110.94
Major level - 109.38
Minor level - 108.60
Major level - 106.25

Friday, the GLD closed at 108.65.? A close today under 109.38 and I would expect the GLD to drop to around $100 - $103.

This looks like the flush out.

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

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

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