March 8, 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.
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After hitting the major 2,000 level, it appears that the markets are set to pullback a bit.
Pre market, the S & P 500 looks like it will open down around 9 points. Support should be at 1,968.80.? 1,937.50 should also act as support.
The VIX has fallen too fast and appears it will bounce. Having said that, 21.88 should be a strong resistance level.
When the VIX reverses to the downside, that is the signal that the markets should head back up.
As I have been saying, the short term charts for the indexes have moved into uptrend formations. You should expect a rally once support sets in.
Tomorrow is our bi-monthly webinar. If there is any specific topic you would like me to cover, please send me an email at davismdt@gmail.com and I will try to incorporate it in the webinar.
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
21.88 is a level I would not expect the VIX to exceed. If it does, it will tell you that the markets should continue down.
18.75 should also be a level of resistance. Watch how the VIX reacts around that level.
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
1,984.38 is the downside confirming level to 1,937.50. Two closes under 1,984 and the objective becomes 1,937.50.
On the outside, a move down to 1,875 is possible, however, I would expect a bounce before that level.
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
A close today under 105.46 and the QQQ should test 103.13.? 103 and 100 should be levels of support.
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 is holding just above the 128.13 support level.? Ultimately, I believe the TLT could hit 137.
Two closes above 128.91 and the objective becomes 131.25.
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 is almost at the 121.88 objective. Yesterday's high was within 30 cents of the 121.88 level.
I still believe the move has been too fast and a pullback would not be out of the question.
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
The XLE came within 4 cents of the 62.50 objective yesterday. Hitting 62.50 is significant. Significant in that it is quite possible the downtrend is over.
The next level is 63.28. Two closes above 63.28 and the objective becomes 65.63.
Lower levels should act as support.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple closed at 101.87 yesterday. Just 31 cents above the 101.56 level. The objective should be up 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.
