November 9, 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
Premium collected - $.75
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Friday marked the sixth week with a higher close for the S & P 500. It closed at 2,099.20.
Friday was also the release of the Non Farm Payroll that shocked the markets because of how many jobs added.
A December rate hike is now back on the table because of it.
Quite frankly, I would have expected more volatile price action on Friday, but it was rather tepid.
The S & P only had an 18 point range.
And it dropped to just under the support level of 2,085 before bouncing up.? Actually, there were two swings off that support level on Friday.
Both coincided with the sell off in the VIX.
Wednesday is our webinar. And if there is a topic you would like me to discuss, please email me at davismdt@gmail.com and I will be happy to address it on the webinar.
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 14.33 on Friday.?
Look for the VIX to reverse to the downside as the indication to go long the markets.
If it finds support at 14.06, the markets should pull back.
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 S & P closed at 2,099.20 yesterday.
2,093 and 2,086 should be support.
I would like to see a close back above 2,101.62 as an indication that the S & P will move up to 2,125.
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 closed at 114.79 yesterday, just under the 114.85 minor level.
A move down to 112.50 should be expected.
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 closed yesterday at 119 on Friday and had a low of 118.74, just one penny above the major 118.75 line.
Two closes above 119.53 and the TLT should try to retest 121.88.
Two closes under 117.97 and is will move lower.
Oversold on shorter timeframes at the moment.
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
Objective should be to 103.13, if the GLD closes under 105.46 today.
Yesterday, the GLD closed at 104.68,
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
Two closes under 69.53 and the XLE should drop to 68.75.
Friday it managed to close at 69.80, just above the 69.53 level.? If this level holds, look for a move up to 71.88.
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.? 120.30 and 118 should act as support.
Watch list:
Bullish Stocks:? PCLN, GOOGL, AMZN, ATHN, EXPE,? CLB, FB, DY, TAP, ADBE, V, CRM, TRIP, FSLR
Bearish Stocks: IBM, ANTM, FFIV, VRX, PLCE, BHI, SCTY, MDVN, RCII, GNC, CP
Be sure to check earnings release dates.