November 3, 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
Short Nov 6th-$14 Call - $.35
ASNA Long at $14.20
Premium collected - $.30
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Yesterday, the S & P 500 continued it's upward climb, closing up 24.69, at 2,104.05. This was above the next upside confirming level, which is 2,101.62.
If the S & P 500 can close above 2,101.62 today, the objective becomes 2,125.
The main concern for a continuation of this move, without a pullback, is that the VIX is getting very close to the major support level of 12.50.
With shorter timeframes back in uptrend formation, you still want to be buying against support.
Also, look for lower support levels to hold, as well? as the mid band on the daily chart.
There are few companies reporting this week that should have large moves, namely Facebook and Tesla.
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 - 17.18 *
Minor level - 14.06
Major level - 12.50
The VIX closed at 14.15 yesterday, 8 cents above the 14.06 level.
If this level holds as support, look for a pullback in the markets.
Resistance should be at 17.18.? And if the VIX fails at this level, look for a reversal from down to up on 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
A close today above 2,101.62 and the objective becomes 2,125.
2,093 should be support.
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
The QQQ closed yesterday at 114.75, just 10 cents under the minor 114.85 level.
Objective is to 115.63.
Support should be at 113.28 and 112.50.
TLT:?
Major level - 128.13
Minor level - 125.78
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
The TLT closed 7 cents above the 121.88 support level yesterday.
The TLT would need two closes under 121.09 to move down to 118.75.
Two closes above 122.66 and it should retest 125.
GLD:
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
Major level - 106.25
The GLD closed at 108.59 yesterday, just one penny under the minor 108.60 level.
A close today under 108.60 and it should drop to 106.
However, 107 should offer support.
XLE:
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 took out the 68.75 objective yesterday, closing at 69.62.
A close today above 69.53 and it should try and hit 75.
Buying against support still makes the most sense at this point.
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.?
A close today above 120.31 and Apple should make a run to 125.
Buy against lower support levels.
Watch list:
Bullish Stocks:? PCLN, GOOGL, AMZN, ORLY, NOC, EW, EXPE, NKE, HD, FSLR, CLB, CLX, CRM, TRIP, ADBE
Bearish Stocks: FLT, IBM, CMI, AGU, SWKS, SCTY, KMI, FEYE? DV, CSX, POT
Be sure to check earnings release dates.