March 11, 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
DUST Long $4.50
Total Premium collected - $.45
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Yesterday ended up being quite the volatile day in the markets.? After opening at 1,990.97, the S & P 500 ran up to a high of 2,005.08, before selling off to a low of 1,969.25.? From there, the S & P rallied to close at 1,989.57.
On the day, the S & P 500 barely moved.? In fact, on the day, it ended up forming a doji bar, where the close is very close to the open.
However, intra day, the swings totaled over 73 points in the S & P 500.
The question for you is this. Can our support and resistance help to capture some of these swings?
On the first swing up, the resistance level I mentioned yesterday was 2,007.80.? The pivot high was 2,005.08 or within 3 points of the 2,007.80 resistance level.
At that time, the VIX dropped to a low of 17.06 or within 13 cents of the 17.19 support level, before reversing and heading up.
Remember, these price levels are areas to look for support or resistance. There are times when the market does stop right on a level, but that is rare.? I look at them as areas to look for reversals.
After the market bottomed at 1,969.25, the VIX had run up to a high of 19.59 and proceeded to sell off under the 18.75 support level.
That was the indication that the markets should head back up, which it did.
After all this intra day movement, the VIX ended up closing at 18.05.? Back under the major 18.75 level.
As I write this, the S & P 500 is trading to the upside about 19 points.
If it opens to the upside around 19 points, it should open around 2,008.? This is right around the short term support level of 2,007.80.? Watch how the VIX and the S & P reacts around this level.
Here are the key levels for the markets.
?
VIX:
Major level - 25.00
Minor level - 23.44
Minor level - 21.88
Minor level - 20.31
Major level - 18.75
Minor level - 17.19 *
Minor level - 14.06
Major level - 12.50
Minor support at 17.97.? If the VIX opens under that level, look for 17.97 to act as resistance.
Two closes under 17.19 and the objective is to 12.50.
Also, the major 18.75 level should act as resistance.
S & P 500 Cash Index:?
Major level - 2,062.50
Minor level - 2,046.88
Minor level - 2,015.62 *
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
If the S & P opens above 2,000, look for 2,000 to act as support.? 2,007.80 is still a short term support area.
The 1,984 level should also act as support.
As the VIX continues to drop, expect the S & P to head higher.
Nasd 100 (QQQ):?
Major level - 112.50
Minor level - 111.71
Minor level - 107.03 *
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
Short term support at 104.69.? Also, short term support at 105.08.
Lower levels should act as support.
TLT:?
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 *
Major level - 125.00
The TLT is back to the 128.13 support level.? Watch how the TLT reacts around this level.? I don't see the TLT dropping lower than 126.56.
GLD:
Major level - 125.00
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
The GLD came within a few cents of the 121.88 level yesterday.? 121.88 should be major resistance.
The GLD will need two closes under 121.10 to move lower.
XLE:
Major level - 65.63
Minor level - 64.85
Minor level - 63.28 *
Major level - 62.50
Minor level - 61.72 *
Minor level - 60.16
Major level - 59.38
Objective should be to 62.50.? To move higher, the XLE will need two closes above 63.28.
Lower levels should act as support.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple could not close above 101.56 yesterday. It closed at 101.17.
It will still need two closes above 101.56 to move up to 106.25.
Look for support at 100.? Short term charts are in uptrends, so stay biased to the long side.
Watch list:
Bullish Stocks: PRE, BCR, KMB, TFX, NEE, SAFM, XOM, ETR, D, PNW, MO, RAI, VZ, FAST, CAG
Bearish Stocks: AMGN, FL, EQT, NLNK, BCOR, VSLR, TOUR, PMC
Be sure to check earnings release dates.
