November 4, 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 managed to close at 2,109.79, just over 8 points above the 2,101.62 confirming line.
The objective becomes 2,125.
And the markets appear positioned to continue the upside momentum with a bias to upside before the open.
Trading to the long side remains the best opportunity for profit.
Look for support at the lower levels and for the VIX to continue down.? If the VIX finds support at a key level, such as 12.50 and starts to head up, that will be the clue the markets want to take a breather.
Today I will be a guest on John Thomas's webinar at 12:00 Eastern.? Hope to see you 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 14.54 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.
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 objective should be to 2,125.? I would expect some resistance at 2,117.17.
2,093 and 2,086 should be 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 high yesterday for the QQQ was 115.42.
This was within 21 cents of the 115.63 objective.
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
A close today under 121.09 and the objective becomes 118.75.
At this point, I would expect 121.88 to act as resistance.
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 should be to 106.25.
Resistance should be at 108.60.
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 objective for the XLE should be to 75.
It has had two closes above 69.53.? That level should now act as support.
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, NOC, EW, EXPE, ATHN, NKE, HD, TAP, CLB, CLX, CRM, TRIP, ADBE
Bearish Stocks: BWLD, ANTM, VMW, IBM, CMI, HAIN, SCTY, EAT, RCII, GNC
Be sure to check earnings release dates.