October 1, 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 15 $27 Call
NCR Short Jan 15 $29 Call
Net Debit - $0.70

X Long at $14
Short September 25th $14 Call @ $.54
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Let me say I am truly sorry for the technical difficulties I experienced yesterday that forced a cancellation of the webinar.

You should have already received a link for the new time on Monday.

I can now relate to the issues that John has trying to do a webinar from a remote corner in Europe.

Yesterday, we got the bounced as anticipated, with the S & P 500 closing up on the day almost 36 points.

This morning, it appears there will be follow through to the upside.

Yesterday I mentioned the oversold condition in the pipeline stocks and investors must have read that, as most of the pipelines had a strong bounce.

KMI was up almost 6%.? And both ETE and ETP were up over 10% on the day.? VNR was up almost 7% on the day as well.
?
All markets bounce up from the lower extreme bollinger band yesterday, including the XLE.

The amount of the follow through on this drive should tell us if the overall temperature of the market has changed.

Today begins the fourth quarter of 2015 and on October 8th, Alcoa reports beginning the start of the next earnings season.

Also, be aware that tomorrow at 8:30 EST is the release of the non farm payroll.

This should be a closely followed report as the Fed gets closer to raising interest rates.

Here are the key levels for the markets.

Stocks...
?
VIX:?

Minor level - 32.81
Major level - 31.25
Minor level - 29.68
Minor level - 26.56 *
Major level - 25.00
Minor level - 23.44
Minor level - 20.31
Major level - 18.75
Minor level - 17.18

The VIX closed just under the 25 level yesterday.
Support should be around 23.44.

Also, it did confirm a move up to the 31.25 level, so I do feel at some point it will retest that price.

S & P 500 Cash Index:?

Minor level - 1,945.32
Major level - 1,937.50
Minor level - 1,929.68
Minor level - 1,914.12 *
Major level - 1,906.30
Minor level - 1,898.48
Major level - 1,875.00

The strong support levels I mentioned yesterday certainly held.

Not only did the S & P 500 move up from the 1,875 level, it closed above the minor 1,914.12 level.

The implication is that if it can close above 1,914.12 today, it should try and move up to 1,937.

Nasd 100 (QQQ):?

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
Minor level - 102.35
Minor level - 101.78 *
Major level - 100.00
Minor level - 99.21
Major level - 96.88
Major level - 93.75

The QQQ jumped back above the 100 level, closing at 101.76.

A close above 100.78 today and the objective should be to 103.13.

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 - 117.96
Major level - 115.63

The TLT is trying to move up to 125.?

Lower levels should act as support.
Held above 122.66.

GLD:

Major level - 112.50
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 GLD retesting 106.25, as I mentioned yesterday.

XLE:

Major level - 68.75
Minor level - 66.41
Major level - 65.63
Minor level - 64.84
Minor level - 63.28
Major level - 62.50
Minor level - 61.72
Minor level - 60.16 *
Major level - 59.38

XLE bounced up off the lower bands, similar to the S & P.
A close today above 60.16 and it should move up to 62.50.

Apple:

Major levels for Apple are 118.75, 112.50, 106.25, 100, 93.75 and 87.50.
100 should be a major support level for Apple.?

The minor level above 106.25 is 107.81 and Apple stopped yesterday 5 cents above it.? Look for a retest of 112.50.

Watch list:
Bullish Stocks:? NKE, RAI, MCD, HRL, ATO,? WX, FLO, NVDA

Bearish Stocks: ALXN, JAZZ, PVH, BIDU, FFIV, ZBH, MON, CAT, CMI, MMM, MWE, DD, APA, FDX

Be sure to check earnings release dates.