March 7, 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
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P Long $13.38
Total Premium collected? - $.35
DUST Long $4.50
Total Premium collected - $.45
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Friday marked the third consecutive higher weekly close for all major markets.
The S & P 500 closed one penny under the 2,000 level on Friday.
The rally off the 1,812.50 bottom has been impressive, to say the least.? And I mentioned that if the S & P 500 could hit 2,000 on this drive, that it most likely signaled that this corrective phase is over.
From a technical standpoint, there is overhead resistance at 2,000, which is the 200 ema on the daily chart and at 2,037, which is the 253 day simple moving average.??
All major markets broke under their respective lower bollinger bands on the daily charts, so a retest of that level would not be out of the question.
This week there is not a lot on the economic calendar and earnings season is coming to an end.
Here are the key levels for the markets.
?
VIX:
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 objective should be back to 12.50.
17.19 and 18.75 should act as resistance at this point.? The 12.50 level has been strong support on the VIX for over three years.
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
To move higher, the S & P will need two closes above 2,015.62.? If it can do that, then the objective becomes 2,062.50.
1,984 and 1,953 should act as support.
The 60 minute chart is firmly in an uptrend, so expect support to come in at lower levels on a pullback.
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
The QQQ did take out the 106.25 level on Friday.
Two closes above 107.03 and the objective becomes 112.50.? And support should be at 105.46 and 104.?
Like the S & P 500, the short term 60 minute chart is in an uptrend.? Support should be around 101 to 102.50 for the QQQ.
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 was back to test the 128.13 level on Friday.
128.13 should be major support.? It should retest the upper band on the daily chart, which is 133.
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
121.88 should be the objective at this point.? If it cannot get through 121.88, I would expect a fairly sharp and quick pullback.
GLD has moved too fast and I do expect a pullback.
XLE:
Minor level - 63.28 *
Major level - 62.50
Minor level - 61.72 *
Minor level - 60.16
Major level - 59.38
Minor level - 58.60
Minor level - 57.03
The objective should be to 62.50.
Lower levels should act as support, namely 61.72 and 60.16.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
A close today above 101.56 and the objective should be to 106.25.?
Overbought on the daily chart at the moment and a pullback would not be out of the question.
Watch list:
Bullish Stocks: PNRA, TWC, TFX, JNJ, SAFM, K, TJX, GIS, MO, RAI, VZ, FAST, CAG
Bearish Stocks: VRX, ANAC, CERN, BCOR, CBR, PPHM, OREX
Be sure to check earnings release dates.
