June 18, 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
No current positions.
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Today's Working Orders
No working orders.
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The Fed came out and announced that they would stay pat on raising interest rates for now. ?The market reacted with volatility that has not been seen for a while after a Fed meeting.
Recent Fed announcements have been rather tepid, so to see a a 17 point swing starts to bring back old memories.
The question is how could you trade those moves?
In yesterday's morning update I mentioned that 14.45 should be a short term support level for the VIX.
It just so happened that the low on the VIX at 9:30 was 14.41 or 4 cents under that level.
As the VIX found support and began to move up, the S & P 500 dropped 14 points.
Then the VIX moved up to a high of 15.49 and promptly dropped. ?The failure again to get through 15.63 was the clue to get long the market. ?The S & P rallied almost 18 points off the VIX failure.
On yesterday's webinar, I showed how the market moves off the VIX signals.
If you were able to take that information and use it to your benefit, please let me know. ?Send me an email at davismdt@gmail.com and let me know what you traded.
Stocks...
VIX: ?Key levels are 15.63 and 12.50
Above 15.63 is 16.41.
Short term levels: ?14.06
Based on closing under 14.84, the VIX should drop to 12.50.
S & P 500 Cash Index:?
Support should be at 2,093.80. ?On the upside, the key level is 2,101.62. ?If the market can close above that level for two days, it should run back to 2,125.
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Nasd 100 (QQQ): Key levels are 109.38 and 106.25.
Yesterday, the QQQ closed at 109.10, just 28 cents under the 109.38 level.?
110.16 is the next key upside level. ?Two closes above that level and the objective should be 112.50. ?It should act as resistance on the next run.
TLT: ?Key levels are 118.75 and 115.63.
The TLT closed just under the 118.75 resistance level yesterday at 118.15. ?119.53 should act as resistance.
If the TLT can close above 119.53, it would pave the way to a move to 121.88.
117.96 should act as support.
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GLD: Key levels are 114.06 and 112.50. ?The GLD is trading between these levels. ?
Yesterday, I mentioned that there is nothing exciting about the metals and the GLD ended the day closing at 113.85.
If it can close above 114.06, then it becomes worth looking at.
XLE: Key levels are 78.13 and 75.
Key levels for the XLE are 77.34 and 75.78. Yesterday, the XLE closed at 77.18, 16 cents under the 77.34 level. A close under 77.34 today would push the XLE down to 75.
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Watch list:
Bullish Stocks: NFLX, GS, PANW, ALNY, AMBA, GILD, GD, NKE and MA
Bearish Stocks: CMG, GOOGL, Z, KLAC, CAR, QCOM and WDC