November 12, 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
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Trading has been rather quiet this week, with the market in a narrow range.
The range this week is under 30 points for the S & P 500, compared to an average true range that is 56 points.
The 2,085 level once again was the level to watch, In fact, the high for yesterday was 2,086.94 or almost 2 points above the resistance level.
At this point, I am still biased for a drop to 2,062.50.
This is because the S & P 500 has had two closes under 2,085.98.? 2,070 should be a minor support area, so you would want to watch how the S & P reacts around that level.
As for the VIX, it did close just above 16 yesterday.
I am still looking for 17.19 to be resistance.
Once the VIX reverses to the downside, preferably against a resistance level, is when the markets should head back up.
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
Resistance still remains at 17.19.
I would expect a retest of the 17 area at some point.? Situation remains the same as yesterday.
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
2,070 level should act as support.? A break under that level and look for a move to 2,062.
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
Support should be at 112.50.
Two closes under 111.72 and the QQQ should move down to 109.
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 is bouncing around the 118.75 level.
I do expect a drop to around the 112 to 115 area.
The next major level to the downside is 117.97.
Two closes under 117.97 will confirm the 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 closed back under 103.91 yesterday.
The key level the GLD is 103.13.? A break under that level and I would fully expect the GLD to continue lower.
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 broke under the 68.75 level yesterday.
A close today under 67.97 and it should drop to 65.63.
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.?
Apple bounced off the 115.63 support level yesterday.
If this level cannot hold, I would expect a move down to 112.50.
Watch list:
Bullish Stocks: GOOGL, AMZN, ATHN, FB, DIS, RCL, DY, MA, ADBE, V, JPM, QIHU, AWAY, NVDA
Bearish Stocks: IBM, ANTM, TLT, CMI, PVH, VRX, JACK, YUM, AKAM, DECK, EAT, WFM
Be sure to check earnings release dates.