November 5, 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

RDN Long at $13.88
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Yesterday, saw a slight pullback in the markets with the S & P 500 closing down 7.48 at 2,102.31.

The upside objective for the S & P 500 still remains at 2,125.? The clue for a reversal from down to up is a reversal to the downside on the VIX.

As long as an upside objective remains open the only thing that would countermind that would be if the market confirmed to the downside.

In the case of the S & P 500, that would mean two closes under 2,085.90.

Because the S & P 500 has confirmed a move up to the next level, which is 2,125, I would expect downside levels to act as support.

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 14.54 yesterday.? This is the fifth day it has closed above the 14.06 level.

If this level holds as support, look for a pullback in the markets.

I mentioned yesterday that 2,093.80, should act as support and yesterday's low was 2,096.98. Just three points above it.

Also, the S & P closed at 2,102.31or above the 2,101.62 minor level.? This is also a positive indication because you would expect downside levels to be exceeded if the markets were to turn bearish.

Remember that tomorrow is the Non Farm Payroll report and I would expect excess volatility based on the looming Fed rate hike.

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 15.51 yesterday. ?

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

The minor 2,117.17 acted as resistance as I mentioned.

2,093 and 2,086 should be support. Also, lok for 2,101.62 to act as support.

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 is within 16 cents of the 115.63 objective.

115.66 is the upper extremed bollinger band on the daily chart.

If the QQQ cannot get through that level, look for a pullback.

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 yesterday exactly on the 121.09 minor level.
121.88 should act as resistance.

Objective should be down to 118.75.

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

The downside objective of 106.25 was hit yesterday and exceeded. The GLD closed at 105.97.

Two closes under 105.46 and the objective is to 103.13.

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 is against the 71.88 major level.
Look for 69.53 to act as support.

Two closes above 72.66 and the objective becomes 75.

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.

Watch list:
Bullish Stocks:? PCLN, GOOGL, AMZN, ORLY, EW, EXPE, ATHN, NKE, HD, TAP, CLB, CLX, CRM, TRIP, ADBE

Bearish Stocks: BWLD, ANTM, FFIV, VMW, CMI, HAIN, SCTY, EAT, RCII, GNC

Be sure to check earnings release dates.