July 7, 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 continue to bounce up and down based on the news out of Europe.
The positives for the market are that the S & P 500 has not closed under the low of the long range bearish candle from June 29th.
That day also happened to be a selling climax.? To me, the implication is if the S & P could close under the low of that day, it is quite possible that there would be a decent size sell off.
The S & P has managed to trade within the body of that candle since that day.
The question for us is what will signal a reversal to the upside?
The VIX should help us determine when the market should head back up.
Personally, I would have preferred a spike up in the VIX to around the 22 level.? At that level, I would definitely begin to add puts on the VXX.
At this point, it does not seem like it will get there.
I could be wrong, but I don't think the VIX gets that high.
Pre open, the markets are up slightly.? 2,071.20 should be an area of support for the S & P 500.
Here are the key levels for the markets.
Stocks...
?
VIX: ?
Major level - 21.88,
Major level - 18.75
Minor level - 16.41
Major level - 15.63
Two closes under 17.96 and objective is to 15.63
The VIX closed yesterday at 17.01.? If it closes under 17.96 today, it should drop to 15.63.
Watch where the VIX opens this morning.? An open under 17.01 and 17.96 should be resistance.
S & P 500 Cash Index: ?
Major level - 2,093.80
Minor level - 2,070.33
Major level - 2,062.50
Minor level - 2,054.68 (two closes under 2,054.68 and the objective is to 2,031)
Short term levels are 2,070.32 and 2,078.15
Two closes above 2,070.32 and the objective becomes 2,093.80.
Nasd 100 (QQQ):? .
Major level - 109.38
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
Minor level - 105.46
The QQQ continues to trade between the 109.38 and 106.25 levels.? And it continues to find support at the minor 107.03 level.
TLT: ?
Major level - 118.75
Minor level - 116.41
Major level - 115.63
Minor level - 114.85
Major level - 112.50
Yesterday's high was 118.65, 10 cents under the 118.75 level.
Two closes above 119.53 and the objective becomes 121.88.
GLD:
Major level - 114.06
Minor level - 112.89
Major level - 112.50
Minor level - 112.11
The GLD is trying to get back above the 112.50 level.? Yesterday's high was 112.58, just 8 cents above it.
Expect it to continue to bounce between 112.50 and 110.94.
To get excited about the GLD, I would want to see it hit 115.63.
XLE:
Major level -? 75
Minor level - 74.21
Major level - 71.88
Minor level - 71.09
71.88 is a very key level or the XLE.? If the XLE closes under 71.88 for two consecutive days, it could drop 10% to 13%.
Watch list:
Bullish Stocks: RCPT, DIS, NKE, SWK, DE, FB, EA
Bearish Stocks: CMI, MON, CVX, WDC, SNDK, WDAY, GMCR, SNDK and QCOM