June 26, 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.
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The market sell off continued yesterday after the VIX found support at the 12.50 level.
And a few of the key levels I mentioned yesterday have now become significant.
Short term momentum has shifted to the downside.
Especially if the VIX closes tomorrow above 13.28.
The only bullish indicator I see for the short term is that the down to up volume declined yesterday.
This could mean the market gets a bounce tomorrow.
Ideally, I want to see all the short term timeframes in an uptrend formation.? However, this is not the case at the moment.
The 10 minute and 60 minute charts for the S & P 500 have move into downtrends.? The only short term chart in an uptrend is the 30 minute timeframe.
So, we have to respect the short term momentum.
Here are the key levels for the markets.
Stocks...
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VIX:? Key levels are 12.50 to 15.63
Short term levels:? 14.84, 13.28 and 11.72
Yesterday was the first close above 13.28.? A close above that level today would indicate that the VIX should test the 15.63 level.? And tell us that the S & P should continue down.
Short term resistance on the VIX is 14.06 and 14.45.
I do expect a retest of the 12.50 level.? I would be quick to book profits on any VXX calls if it appears to be stalling.
S & P 500 Cash Index: ?
Key levels are 2,125 and 2,093.80
2,109.40 should be a resistance level now that it has been taken out. ?
Yesterday closed at 2,102.31.? This was the second day closing under 2,117.20, which tells me the S & P 500 should drop to 2,093.80.
Short term support is at 2,101.60 or just above yesterday's close.
If this price gets taken out, expect it to be resistance.
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Nasd 100 (QQQ):? The QQQ and the NASD composite continue to show the most strength of all the major markets.
Key levels now are 112.50 and 109.38.
109.38 to 110.16 should be support.? Yesterday, the QQQ closed at 110, or 16 cents under the 110.16 support level.
109.38 and 108.60 should be support.
TLT:? Key levels are 118.75 and 115.63.
115.63 and 114.85 should be support. ?
I mentioned that if the TLT can close above 116.41 yesterday, it should move up to 118.75.
Yesterday's close was 116.54, so the objective is to 118.75.
The level after 118.75 is the 122 area.
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GLD: Key levels are 115.63, 114.06, and 112.50.
The GLD continues to hover around the 112.50 level.
112.89 is the level just above 112.50.? And 112.11 is level just under it.
Two closes above 112.89 and the GLD should head up to 114.? Two closes under 112.11 and it should drop to 110.94.
XLE: Key levels are 78.13 and 75.
Short term support levels for the XLE is at 75.78.
I do expect a retest of the 75 level.
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Watch list:
Bullish Stocks: NFLX, GS, RCPT GD, UHS, GILD, AET, DIS, NKE, SPLK, SBUX and FB
Bearish Stocks: PCLN, MON, CVX, WDC, SNDK, WYNN, GMCR, CAR and KLAC