June 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 Premium collected? – $.35

DUST Long $4.50
Total Premium collected – $.70

DNR Long $4.20
Total Premium collected – $.18

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Friday, the S & P 500 sold off 6.77 points, giving back the gains from Thursday.

For the week, the market was down almost 25 points.

The VIX ended the week spiking up to a high of 22.89, before settling at 19.41.? It was up 13.98% for the week.? Having
said that, the price action formed a shooting star, which is a bearish candle.

Because the VIX could not hold the 21.88 line, it sets up a scenario where it will most likely retest 15.63.

All this movement in the VIX seems to be a reaction to the “Brexit” vote, which is to happen on June 23rd, which is this Thursday.? Great Britain will be voting to decide whether to stay in the European Union.

Quite frankly, I am not sure what the outcome could be if they decide to leave, but the one thing that markets absolutely do not like is uncertainty.

Having said that, the market are trading well to the upside pre open this morning.

The calls on DNR expired Friday and profits have been booked.

Here are the key levels for the markets.

VIX:

Major level – 25.00
Minor level – 24.21
Minor level – 22.66 *
Major level – 21.88 *
Minor level – 21.09 *
Minor level – 19.53
Major level – 18.75
Minor level – 17.96
Minor level – 16.41
Major level – 15.63
Major level – 12.50

Friday’s low was 18.71, just under the 18.75 level. The VIX should open under 18.75 today, so expect that level to act as resistance.

Minor support is at 17.19.? If that cannot hold, look for a move down to 15.63.

S & P 500 Cash Index:?

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

Friday’s low was 2,062.84, which, as you know, is 34 cents above the 2,062.50 major support level.

Minor resistance is at 2,085.90 and 2,078.10, which just happened to be Friday’s high.

Sorry, Friday’s high was actually 2,078.20.

Two closes above 2,078.12 and the S & P 500 should retest 2,125.

Nasd 100 (QQQ):?

Major level – 112.50
Minor level – 111.71
Minor level – 110.16
Major level – 109.38
Minor level – 108.60
Minor level – 107.03 *
Major level – 106.25
Minor level – 105.46

The QQQ closed at 106.49 on Friday, after hitting a low of 106.24.? This was just one penny above the major 106.25 support level.

Two closes above 107.03 and the QQQ should test 109.38.

Minor resistance is at 107.03 and 107.42.

TLT:?

Major level – 137.50
Minor level – 136.72
Minor level – 135.16 *
Major level – 134.38
Minor level – 133.60 *
Minor level – 132.03
Major level – 131.25
Minor level – 130.46

After hitting the objective of 137.50, the TLT sold off .85 on Friday.

But we were looking for that based on the overbought condition and hitting the 137.50 level.

134.38 should also act as support.

GLD:

Major level – 125.00 *
Minor level – 124.22
Minor level – 122.66 *
Major level – 121.88
Minor level – 121.09
Minor level – 119.53
Major level – 118.75

The GLD closed at 123.95 on Friday.? At this point, it should retest the 121.88 level.

Minor support is at 120.31.

The gold vix continues to move up.

XLE:

Major level – 71.88
Minor level – 71.09
Minor level – 69.53
Major level – 68.75
Minor level – 67.96
Minor level – 66.41 *
Major level – 65.63 *
Major level – 62.50

A close today above 66.41 and the XLE should move up to 68.75.

Minor support is at 66.41.? 66.80 should also act as support.

67.19 should be minor resistance, so watch how the XLE reacts around that level.

Apple:

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

Apple is still holding above the minor 96.88 support level.

Apple hit a high of 96.65 on Friday, just 23 cents under the 96.88 support level.? After that it sold off and closed at 95.33.

Minor support is at 93.75.? If Apple breaks under 93.75, it could drop to the 75 area.

Watch list:

Bullish Stocks: MMM, CLX, NEE, WYNN, DLR, HSY, DTE, DLTR, XOM, GOV, LL, LOCK, EGHT
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Bearish Stocks:? CMG, BIIB, TSLA, AMG, AMGN, GD, UHS, PANW, ALXN, EXPE, DEO, CELG, GILD, TSO, LLY, R
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Be sure to check earnings release dates.