November 20, 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
ETE Long at $19.50
Short Nov $20 call - $.60 collected
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Before I begin today's update, I need to mention two things.
First, is that there are two open positions that expire today.
The first position is the short call on ASNA.? If you followed the alert, you would have sold the $14 call that expires today.
ASNA has sold off in harmony with some of the reatailers that reported less than expected results this week.? As a result, the calls will no doubt expire worthless today.
The second position is the short $20 call on ETE.
ETE has traded around the $20 strike for the past three days and I suspect that today will be no different.
Hold the position and if I make a suggestion you will receive a separate email.
The final comment is that the Corporate Buybacks are now posted in the members area.
They can be accessed at this page:? https://www.madhedgefundtrader.com/buybacks/
You can also access the reports by clicking on the Mad Day Trader link in the members area.? Scroll down to the link entitled "Buybacks".
Every month a new report will be posted with the details of the buybacks announced that month.
If you have any questions, feel free to contact me.
The VIX did in fact close yesterday under the 17.19 level.
Based on that, I would expect a retest of the 12.50 level.? However, be aware that 14.06 has been strong support on the VIX as well.
Because the VIX has confirmed a move down, this should mean that the S & P should continue higher.
Pre open, that appears to be the case.
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 has confirmed a move back down to the 12.50 level.
Resistance should be at 17.19 and 18.75.
S & P 500 Cash Index:?
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 active objective is now 2,093.80 because the S & P closed yesterday above 2,070.33.
Minor resistance at 2,085.99. Look for support at 2,070 and 2,062.
The 2,101 level will most likely act as resistance the first time up there.
Nasd 100 (QQQ):?
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
Minor level - 108.60
Minor level - 107.03
The objective should be 115.63, with yesterday's close above 113.28.
Lower levels should act as support.
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
Objective should still be back to 121.88.
GLD:
Major level - 106.25
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
Minor level - 102.34
Major level - 96.88
The objective should be down to 96.88.
Still a? market to avoid.
Gold had a bit of a bounce yesterday, but trend is still down.? Resistance should be around 106.
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
68.75 should still be the objective.
I would epect that the XLE will reclaim 67.97 today.? If it doesn't, it will most likely retest 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.?
The 118.75 level was hit yesterday.
Look to buy at support levels, with 114.06 the most logical.
Watch list:
Bullish Stocks: COST, DIS, RTN, VMC, DHR, TAP, CBOE, QIHU, TSS, V, GE, XRS, OMI, PSX, ADBE, TSO
Bearish Stocks: CMG, ANTM, TGT, JACK, TIF, CHRW, AKAM, VRX, DDS, PZZA, YUM, APC, LSTR, WDC
Be sure to check earnings release dates.
