March 1, 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
X Long at $14
Total Premium collected - $.89
ASNA Long at $14.20
Total Premium collected - $.75
ETE Long $14.05
Total Premium collected - $1.05
P Long $13.38
Total Premium collected? - $.35
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Yesterday closed out the second month of 2016. A year that has seen mostly downward price pressure.
The S & P 500 closed to the downside almost 16 points yesterday. This morning, it appears the markets are set to bounce and are trading to the upside almost the same amount.
The S & P closed back under the 1,937.50 level yesterday, at 1,932.33.
To move lower, the S & P would need two closes under 1,921.88.
Based on the pre open activity, it appears that the 1,953.12 level will be tested today.
A close above that level would be bullish.
The NASD did fail to take out it's prior top. Perhaps on a push today it will. This would be viewed as bullish and bring the NASD in line with the DOW and S & P.
Here are the key levels for the markets.
VIX:
Minor level - 29.68
Minor level - 26.56 *
Major level - 25.00
Minor level - 23.44
Minor level - 20.31
Major level - 18.75
Minor level - 17.19
Minor level - 14.06
Major level - 12.50
The VIX popped up yesterday and closed at 20.55.? If the VIX drops back under 20.31, this should confirm the bounce in the market.
A close above 20.31 today would mean that the VIX should try and test 25.
Watch where the VIX opens today. An open under 20.31 and that level should be resistance.
S & P 500 Cash Index:
Major level - 2,000.00
Minor level - 1,984.38
Minor level - 1,953.12 *
Major level - 1,937.50 *
Minor level - 1,921.88
Minor level - 1,890.62
Major level - 1,875.00
Minor level - 1,859.38
Minor level - 1,828.12
Major level - 1,812.50
The S & P will still need two closes above 1,953.12 to confirm a move up to 2,000.
Watch how the S & P reacts around the 1,953 level.
Nasd 100 (QQQ):
Major level - 106.25
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
Minor level - 102.35
Minor level - 100.78
Major level - 100.00
Minor level - 99.21
Minor level - 97.66
Major level - 96.88
The QQQ's sold off and closed at 102.50, or 15 cents above the 102.35 level, which should have acted as support.
Two closes above 103.91 and it should move up to 106.25.
Lower levels should act as support.
TLT:
Major level - 137.50
Minor level - 136.71
Minor level - 135.16
Major level - 134.38
Minor level - 133.60
Minor level - 132.03 *
Major level - 131.25
Minor level - 130.46 *
Minor level - 128.91
Major level - 128.13
The TLT closed above 130.46 yesterday, so for it to drop, it will still need two closes under 130.46.
Two closes above 132.03 and it should move up to 134.38.
GLD:
Major level - 121.88 *
Minor level - 121.10
Minor level - 119.53 *
Major level - 118.75
Minor level - 117.96 *
Minor level - 116.41
Major level - 115.63
Minor level - 113.28
Major level - 112.50
The GLD is very close to taking out the 118.75 level.? Above 118.75 is the minor level of 119.53.
Two closes above 119.63 and it should try and hit 121.88.? Very close to moving into an uptrend on the daily chart.
XLE:
Minor level - 60.16
Major level - 59.38
Minor level - 58.60
Minor level - 57.03 *
Major level - 56.25 *
Minor level - 54.69
Minor level - 53.19
Major level - 53.13
The XLE could not hold 57.03 and closed at 56.58.? It will now need two closes above 57.03 to move up.
To move down, it will need to close under 54.69 for two days.
Support should be at 56.25.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
The odds still favor a retest of 100.
100 is still a key resistance level.
Watch list:
Bullish Stocks: PNRA, BCR, TWC, TFX, SAFM, FSLR, TJX, EW, COR, GIS, OTEX, CAG
Bearish Stocks: VRX, ALNY, AIG, WDC, RH, ABCO, SCTY, KKR, ARLP, AEL, ALJ
Be sure to check earnings release dates.