July 28, 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
Premium collected - $.70

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Today's Working Orders

No working orders.

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After five consecutive bearish closes, it looks like the markets are set to bounce today.

In the last minutes of market action yesterday, the VIX dropped from 16.27 to close at 15.60.

When this happens so late in the day, it is really difficult to react and try and put on a position.

But if you follow the VIX levels I share, you probably realize that the 15.63 level was the objective yesterday.

And as the VIX continued to head up, the expectation is that the? market will continue to drop.

For example, if you were on John's webinar last week, I mentioned that the market was at an inflection point.

An inflection point to me is when the market is deciding which way to go.

And the next move would be determined by which way the VIX moves.

I will show a few charts of what I mean on tomorrow's webinar.

Also, if you have anything you would like me to discuss, please email me directly at ... davismdt@gmail.com and I will try and add to the webinar.

Here are the key levels for the markets.

Stocks...
?
VIX: ?

Major level - 17.19
Minor level - 16.02
Major level - 15.63
Major level - 14.06
Minor level - 12.89
Major level - 12.50

The VIX closed yesterday just under the 15.53 level.
Watch where the VIX opens.? An open under 15.63 and expect it to act as resistance.

Also, 16.02 should act as resistance.

The VIX did not get as high as 17.19, which is a good sign.

S & P 500 Cash Index: ?

Major level - 2,156.30
Minor level - 2,132.82
Major level - 2,125.00
Major level - 2,093.80
Minor level - 2,085.98
Minor level - 2,070.32
Major level - 2,062.50

The 2,062.50 objective was achieved yesterday, with the low for the S & P 500 coming within one point of it.

The shorter term 60 minute chart is still in an uptrend and is oversold.

2,070.32 and 2062.50 levels should act as support.

You want to see the VIX reverse to the downside and the S & P 500 hold support at one the levels as a clue to initiate long positions.

Nasd 100 (QQQ):?

Major level - 115.63
Minor level - 113.28
Major level - 112.50
Minor level - 110.16 - 2 closes under & objective is 109.38
Major level - 109.38 - Should be support.
Minor level - 107.03
Major level - 106.25

The QQQ still has not closed under the 110.16 level.? The QQQ still remains the strongest of the major markets.

TLT: ?

Major level - 125
Minor level - 122.66? *
Major level - 121.88
Minor level - 119.53? *
Major level - 118.75
Minor level - 117.96
Minor level - 116.41
Major level - 115.63

The TLT took out the 121.88 objective. Two closes above 122.66 and the objective is 125.? Two closes under 119.53 and the objective is 118.75.

Expect volatility tomorrow with the Fed announcement.

GLD:

Major level - 112.50
Major level - 109.38
Minor level - 107.03
Major level - 106.25
Minor level - 105.46 *
Major level - 103.13
Minor level - 102.34 *
Major level - 100

Two closes under 102.34 and the objective is 100.? Two closes above 105.45 and the objective is 106.25.

XLE:

Major level -? 75
Minor level - 74.21
Minor level - 72.66
Major level - 71.88
Minor level - 71.09 *
Major level - 68.75
Minor level - 67.96 *
Major level - 65.63

Sell any rallies at this point.

The XLE closed under the 68.75 level yesterday.
Two closes under 67.96 and the objective is 65.63.

Ideally, I would like to see a move up to around 75.
If that scenario sets up I would look for longer term puts.

Watch list:
Bullish Stocks:? AMZN, PANW, ULTA, EW, MNST, NKE, FB, UA, SPLK, V, SBUX, GIS

Bearish Stocks: IBM, CMI, DDS, CVX, Z, CAT, EOG, DECK, XLE, LNG, UA, MON

Be sure to check earnings release dates.