November 2, 2016 - MDT Pro Tips A.M.
MDT AlertWhile 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.
GOGO? Long at $19.93
Total Premium Collected? $1.95
ASNA Long at $14.20
Total Premium Collected $.75
DUST Long $4.50
Total Premium Collected? $.70
FCX Long $12.45
Total Premium Collected? $.24
DYN Long at $12.55
Premium Collected $.48
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November began with a 14.43 sell off.? The sell off could have been worse because the intra day range was 33.60 points.? The S & P 500 stopped at 2,097.85 before rallying about 14 points to close at 2,111.72.
Based on yesterday?s price action a couple of scenarios should come into affect.
The first is that the market is oversold on a short term basis.? We know that simply because the S & P 500 is trading under the lower extreme bollinger band on it?s 60 and 30 minute charts.? A bounce here would be expected.
The second scenario is that the S & P 500 took out the minor 2,117.20 level and managed to close under it.
This sets up a situation where if the market closed under 2,117.20 today, I would expect a move down to 2,093.
As I mentioned yesterday, the market will not turn up until the VIX begins to reverse.? The VIX continued to move up virtually all day until it topped out at 20.43, just above the 20.31 level I mentioned yesterday.
I also suggested that the VIX should not take out 20.31.? Now that it has taken out that level, I would expect further upside for the VIX.? This would mean at least one more downswing for the market.
Friday we will get the Non Farm Payroll which will be closely watched by investors to help give clarity if a rate hike is coming next month.
Continue to monitor the levels for entry points.
Here are the Key Levels for the Markets:
$VIX:
Major level - 25.00
Minor level ? 24.22
Minor level ? 22.66
Major level ? 21.88
Minor level ? 21.10
Minor level ? 19.53 *
Major level - 18.75 *
Minor level - 17.96
Minor level - 16.41
Major level - 15.63
Minor level - 14.85
Minor level - 13.28
Major level - 12.50
The VIX will need two closes above 19.53 to move up to 21.88.? 17.19 should be minor support.
$SPX:
Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12
Major level - 2,187.50
Minor level - 2,171.88
Minor level - 2,140.62 *
Major level - 2,125.00 *
Minor level - 2,109.38
Minor level - 2,078.12
Major level - 2,062.50
With the S & P 500 taking out the 2,125, that level should now be resistance.? Two closes under the minor 2,109.38 level and the S & P 500 should drop to 2,062.50.
The minor 2,117.20 level should be tested today.? Watch how the market reacts at this level.
Yesterday?s high was just under the 2,132.80 resistance level.
QQQ:?
Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75 *
Minor level - 117.97 *
Minor level - 116.41
Major level - 115.63
Minor level - 114.84
Minor level - 113.28
Major level - 112.50
The QQQ did hit the 115.63 level yesterday. To move higher, the QQQ will need to close above 116.41.? To move lower, it will have to close under 114.84.
Like the S & P 500, the QQQ is oversold on a short term basis.
TLT:?
Major level - 137.50
Minor level - 136.72
Minor level - 135.16
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
The TLT is trying to hold the 131.25 level.? If it does rally, I would expect the 134.38 level to act as resistance.
Two closes above 132.03 and a move up to 134.38 would be expected.
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 ? 117.97
The GLD gapped up and closed at 122.73. A close today above 122.66 and the GLD should test 125.
125 should be resistance on a retest.
XLE:
Major level - 75.00
Minor level - 74.22
Minor level - 72.66
Major level - 71.88
Minor level - 71.10
Minor level - 69.53 *
Major level - 68.75 *
Minor level - 67.96
Minor level - 66.41
Major level - 65.63
The XLE is trying to hold the 68.75 level.? To move higher, it will need two closes above 69.53.? To move lower, two closes under 67.96.
Also, 68.36 should be minor support.? Short term momentum is still bullish.
FXY:
Major level: 96.88
Minor level: 96.49
Minor level: 95.70
Major level: 95.31
Minor level: 94.92
Minor level: 94.14
Major level: 93.75 *
Minor level: 93.36
Minor level: 92.58 *
Major level: 92.19
Minor level: 91.80
Minor level: 91.02
Major level: 90.63
The FXY closed above the minor 92.58 level. 93.75 should be tested.? Minor support should be at 92.58.
AAPL:
Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.
Apple broke under the 112.50 level, closing at 111.49.? A close today under 111.72 and Apple should test 106.25.? Short term Apple is oversold.? Look for a bounce here.
WATCH LIST:
Bullish Stocks: NOC, GS, BA, MA, NVDA, AKAM, QCOM, MSFT,
Bearish Stocks:? CMG, REGN, AGN, CI, KMB, VRTX, ESRX, RARE
Be sure to check earnings release dates
