• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

May 12, 2016 - MDT Pro Tips A.M.

MDT Alert

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

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 - $.70

CTXS Long May $82.50 Calls - $2.35

..........................................................................................

Yesterday was the perfect example that following the VIX would have kept you on the right side of the market.

The VIX gapped down at the open and stopped at 13.29, just one cent above the previously identified support level of 13.28.

From there it bounce up to a high of 14.00, just six cents shy of the 14.06 resistance level.

At that point, the VIX was trading between two resistance levels, while the S & P had traded slightly to the downside. At that point, you would be looking for either a breakdown through 13.28 or a breakout above 14.06.

It wasn't until around 1:30 EST when the VIX took out 14.06 ... and continued to run.

That should tell you that the markets should continue to drop.? At that time the S & P 500 was around 2,072 and proceeded to sell off to 2,064.46.? A quick drop of around 8 points based on the breakout of the VIX.

This action tells us a few things.? First is that a close above 2,078.12 yesterday would have confirmed the move up to 2,125.? Because that did not happen the S & P 500 will need two consecutive closes above that level to move higher.

The second thing we can infer was that when the S & P broke under 2,078.12, the logical move would be to a retest of 2,062.50.? 2,062.50 should be strong support for the S & P 500.

And pre open, it appears that the S & P 500 is set to open about 12 points higher.

One other thing I want to point out about yesterday's price action was that is was still an inside day on the daily chart.

Though it seemed like a large sell off, it still formed a lower high and a higher low.

This type of price will often lead to a range expansion.

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 - 15.63 *
Minor level - 14.06 *
Major level - 12.50

The objective for the VIX should now be to a retest of 12.50.

Look for 14.84 to be minor resistance and now 14.06 should offer support.

Minor support is still at 13.28.

S & P 500 Cash Index:?

Major level - 2,125.00
Minor level - 2,109.38
Minor level - 2,078.12 *
Major level - 2,062.50 *
Minor level - 2,046.88
Minor level - 2,015.62
Major level - 2,000.00

The S & P 500 still needs two closes above 2,078.12 for the objective to be 2,125.

Watch how the S & P reacts around the 2,078 level today.? 2,074.20 should also be a level to watch today.

Also, if the S & P can clear 2,070.30, I would expect it to act as support.

The 2,062.50 level should be strong support.

Nasd 100 (QQQ):?

Major level - 112.50
Minor level - 111.71
Minor level - 110.16
Major level - 109.38
Minor level - 108.60
Minor level - 107.03 *
Major level - 106.25
Minor level - 105.46 *
Minor level - 103.91
Major level - 103.13

Like the S & P, the QQQ formed an inside day yesterday as well.

106.25 acted as support and should still be support.? To move higher, the QQQ will need two closes above 107.03.

If the QQQ can get above it,? look for support at 106.64.? 107.81 should be minor resistance.

TLT:?

Minor level - 132.03
Major level - 131.25 *
Minor level - 130.46
Minor level - 128.91 *
Major level - 128.13
Minor level - 127.35
Minor level - 125.78
Major level - 125.00

The TLT finally closed above the 131.25 level, closing at 131.61 yesterday.

130.47 should be support.? To move higher, the TLT will need two closes above
132.03.

GLD:

Major level - 125.00
Minor level - 124.22
Minor level - 122.66
Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75
Minor level - 117.96

The GLD closed yesterday at 122.12, just above the 121.88 level.

To move higher, the GLD will need two closes above 122.66.

Major support should be at 115.63.

XLE:

Minor level - 69.53
Major level - 68.75
Minor level - 67.96
Minor level - 66.41
Major level - 65.63 *
Minor level - 64.84 *
Minor level - 63.28
Major level - 62.50

The XLE closed above the 65.63 level.? If the XLE can hold support at this level, I would expect a move up to the 72 area.

64.84 should be minor support. Two closes above 66.41 and the objective should be to 68.75.

Apple:

Major levels for Apple are 106.25, 100, 93.75, and 87.50.

93.75 is still holding as resistance.? If Apple can rally to around the $100 level, it would be a great short.

It has moved into downtrends on it's shorter term charts.

Watch list:
Bullish Stocks: AMZN, LMT, BCR, STZ, LLL, BDX, RTN, VMC, JNJ, THS
?
Bearish Stocks: TSLA, ANTM, SIG, ASML, GILD, RL, AGU, TGT
?
Be sure to check earnings release dates.

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 DougD https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png DougD2016-05-12 09:21:502016-05-12 09:21:50May 12, 2016 - MDT Pro Tips A.M.

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: May 12, 2016 Link to: May 12, 2016 May 12, 2016 Link to: Trade Alert - (FXE) May 12, 2016 Link to: Trade Alert - (FXE) May 12, 2016 Trade Alert - (FXE) May 12, 2016
Scroll to top