November 10, 2015 - 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
Premium collected - $1.25
NCR Long Jan 16 $27 Call
Net Debit - $.80
X Long at $14
Premium collected - $.89
ASNA Long at $14.20
Total Premium collected - $.75
Short Nov $14 Call - $.45 collected
..............................
Yesterday saw selling pressure in the markets, with all markets closing down on the day.
The S & P 500 closed down 20.62 at 2,078.58. It actually got under the minor 2,070.33 level before recapturing that level and closing about 8 points above it.
The VIX did not quite hit the resistance level I was looking for, which was 17.19. It topped out at 17.09, or 10 cents under the level.
For the S & P to continue down it should close today under 2,085.98.? Watch to see how the market reacts around this level.
Should the S & P close under 2,085.98 today, the objective to the downside would become 2,062.50.
Another clue we have to help us with market direction is the VIX.? It managed to close under 17.19 yesterday, so that level should still be consider resistance.
If it does get above it, the markets should continue down.? However, there is still resistance at the major resistance level of 18.75.
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 VIX closed at 16.52 yesterday, with a high fo 17.09. 17.19 should still be resistance.
Watch how the VIX reacts at this level to help determine what the markets should do.
Look for the VIX to reverse to the downside as the indication to go long the markets.
S & P 500 Cash Index:?
Major level - 2,125.00
Minor level - 2,117.17
Minor level - 2,101.62
Major level - 2,093.80
Minor level - 2,085.98 *
Minor level - 2,070.33 *
Major level - 2,062.50
Minor level - 2,054.68
Minor level - 2,039.12
Major level - 2,031.30
The levels at the moment are 2,085.98 and 2,070.33.?
A close under 2,085.98 today and I would expect a drop to 2,062.50.
Short term timeframes still remain in uptrends.
Nasd 100 (QQQ):?
Minor level - 116.41
Major level - 115.63
Minor level - 114.85
Minor level - 113.28 *
Major level - 112.50
Minor level - 111.72 *
Minor level - 110.16
Major level - 109.38
The QQQ stopped yesterday 36 cents above the expected support level of 112.50.
Watch how the QQQ reacts around this level.
The QQQ would have to reclaim 113.28 to head higher.
TLT:?
Major level - 125
Minor level - 124.22
Minor level - 122.66
Major level - 121.88
Minor level - 121.09
Minor level - 119.53
Major level - 118.75
Minor level - 117.97
Minor level - 116.40
Major level - 115.62
The TLT broke under the 118.75 level yesterday.
However, it is oversold on the short term chart and I would expect a bounce.
The next major level to the downside is 117.97.
Two closes under 117.97 and is will move lower.
GLD:
Major level - 112.50
Minor level - 111.72
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
Minor level - 102.34
The GLD is about one point above the 103.13 objective.
Next minor level is 102.34.
Like the TLT, the GLD is oversold on shorter timeframes.
XLE:
Minor level - 75.78
Major level - 75.00
Minor level - 72.66
Major level - 71.88
Minor level - 69.53 *
Major level - 68.75
Minor level - 67.97 *
Minor level - 66.41
Major level - 65.63
The XLE closed at 69.11 yesterday, just under the 69.53 resistance level.
The objective should be to 68.75.? For the XLE to head lower, it would need to close under 67.97 for two days.
Apple:
Major levels for Apple are 125, 118.75, 112.50, 106.25, 100, and 93.75.
106 should be a major support level for Apple.?
The objective for Apple should be to 125.? Lower levels should act as support.? 120.30 and 118 should act as support.
Apple closed just above the 120.30 support level yesterday.
Watch how it reacts around this level. If it can't hold, it should pull back a bit more.
Watch list:
Bullish Stocks: GOOGL, AMZN, ATHN, AVGO,? DIS, TSO, FB, DY, MA, ADBE, V, CRM, TRIP, FSLR, ALGN
Bearish Stocks: IBM, ANTM, TLT, FFIV, VRX, PLCE, DECK, SCTY, MDVN, CLH, EAT, FEYE
Be sure to check earnings release dates.
