July 20, 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

ASNA Long at $14.20
Total Premium collected – $.75

ETE Long $14.05
Total Premium collected – $1.40

P Long $13.38
Total premiums collected – $.70

DUST Long $4.50
Total Premium collected – $.70
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Yesterday, the markets gave back some small gains by closing 3.12 points to the downside.

It is starting to look like this recent run is stalling out.

I say this for a few reasons.? The first is that yesterday was the fourth consecutive doji bar.

This means indecision. Or it could mean a pause before the move continues.

The second factor is that yesterday, the down to up volume picked up.? Yesterday had a reading of 1.61 versus only .43 for the prior day.

These are clues that you may look at and begin to think that this run may come to an end. Or at least profit taking should set in.

However, we have objectives for the S & P 500 and the objective still remains higher than where we closed yesterday.

The objective still remains at 2,187.50 and the S & P 500 is within 24 points of that objective.

The S & P appears set to open about 5 points to the upside, so look for the target to get hit today.

Volatile moves off earnings are already starting for this quarter, with the 13.1% drop on NFLX.

Expect more moves of this magnitude this quarter.
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Here are the key levels for the markets.

VIX:

Minor level – 19.53
Major level – 18.75
Minor level – 17.96
Major level – 15.63
Minor level – 14.85
Minor level – 13.28 *
Major level – 12.50 *
Minor level – 11.72 *
Minor level – 10.15
Major level – 9.38

The VIX closed at 11.97 yesterday.? This is the second day it closed under 12.50.

The VIX will need two closes under 11.72 to move to 9.38.

10.94 should be a level that will offer support.

Also, I would not expect the VIX break under the 9.38 level.? If the S & P 500 can hit it’s objective and the VIX reverses, look for profit taking to ensue.

S & P 500 Cash Index:?

Major level – 2,187.50 *
Minor level – 2,171.88 *
Minor level – 2,140.62 *
Major level – 2,125.00
Minor level – 2,109.38
Minor level – 2,078.12
Major level – 2,062.50
Minor level – 2,046.88
Minor level – 2,015.62
Major level – 2,000.00

2,156.30 should be a support level for the S & P.

If the S & P 500 can close above 2,164.10, it will help to confirm the move to 2,187.50.

If the S & P 500 can get above 2,164.10, look for that level to act as support.

You still want to watch the 2,171.88 level.? It could offer resistance.

Nasd 100 (QQQ):?

Major level – 115.63
Minor level – 113.28 *
Major level – 112.50 *
Minor level – 111.72 *
Minor level – 110.16
Major level – 109.38
Minor level – 108.60
Minor level – 107.03
Major level – 106.25

The QQQ closed just under the 112.50 level, at 112.13.

To move higher, the QQQ will need two closes above 113.28.

Support should be at 111.91.

TLT:?

Major level – 143.75 **
Minor level – 142.96
Minor level – 141.41
Major level – 140.63
Minor level – 139.85
Minor level – 138.28 *
Major level – 137.50 *

The TLT closed at 139.04 yesterday.? If the TLT can close above 138.28 today, look for a move back up to 140.63.

138.28 is a minor support level.

GLD:

Major level – 131.25 **
Minor level – 130.46 *
Minor level – 128.91
Major level – 128.13
Minor level – 127.35
Minor level – 125.78
Major level – 125.00 *
Minor level – 124.22

Yesterday, I said “Watch the 127.35 level”. The high for the day was exactly 127.35.

This should push the GLD back down to test the 125 level.

Bullish % interest for the gold miner sector remains at 96.43%.?

XLE:

Major level – 71.88
Minor level – 71.10
Minor level – 69.53 *
Major level – 68.75 *
Minor level – 67.96
Minor level – 66.41
Major level – 65.63
Minor level – 64.85
Minor level – 63.28
Major level – 62.50

The 68.75 level continues to offer strong support.

To move higher, it needs two closes above 69.53.

69.14 is a key short term level.? If the XLE can get above it, look for it to act as support.

Apple:

Major levels for Apple are 106.25, 100, 93.75, and 87.50.

Apple is sitting right at the objective, which was 100. In fact, yesterday’s high was exactly 100.

Watch how Apple reacts today.? Breaking through 100 will indicate it should head higher.

Watch list:

Bullish Stocks: LMT, ULTA, BCR, NOC, STZ, COST, LLL, RTN, CLX, CASY, VMC, DLR, PEP, CME, DG, ALGN
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Bearish Stocks:? HUM, FLT, BWLD, JAZZ, WBC, PSX, TSO, MAN, XLO, HIG, COP, AMTD, BKU
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Be sure to check earnings release dates.