October 14, 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 $32 Call
Net Debit - $0.60
X Long at $14
Short September 25th $14 Call @ $.54
ASNA Long at $14.20
Premium collected - $.30
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The market is pulling back as anticipated. I am skeptical of a deep pullback based on the strength of the weekly price bars last week.
To help confirm a move back up in the markets, watch for the VIX to hit resistance and reverse.
The 18.75 level should offer that resistance. If the VIX gets through it, expect further movement down in the markets.
Here are the key levels for the markets.
Stocks...
?
VIX:?
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 *
Major level - 12.50
Look for resistance at 18.75 and 20.31.
Short term charts remain in downtrends.
When the VIX reverses to the downside, the markets should head up.
S & P 500 Cash Index:?
Major level - 2,062.50
Minor level - 2,039.12 *
Major level - 2,031.30
Minor level - 2,007.82 *
Major level - 2,000.00
Minor level - 1,976.62
Major level - 1,968.80
The active objective should be 2,031.30.? I would expect 2,000 and 1,976 to act as support.
The S & P closed at 2,003.69,? just above the 2,000 level.
I would not consider a short unless the S & P closed under 2,000.? Still biased to the upside.
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
Two closes above 107.03 and the target is 109.38.
Lower levels should act as support.
The QQQ is just under the 106.25 level, closing yesterday at 106.10.
Support should be at 105.46 and 104.
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 objective should be 125 as the TLT closed above 122.66 yesterday.
121.88 remains strong support.
GLD:
Minor level - 113.28
Major level - 112.50
Minor level - 110.16
Major level - 109.38 *
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
The objective should be to 112.50.
The GLD is just under the 112.50 objective.
Lower levels should act as support.
XLE:
Major level - 71.88
Minor level - 69.53 *
Major level - 68.75
Minor level - 67.97 *
Minor level - 66.41
Major level - 65.63
Minor level - 64.84
Minor level - 63.28
Major level - 62.50
The XLE closed under 67.97 yesterday.? A close today under that level and the XLE should drop to 65.63.
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.?
Apple continues to trade in a tight range.? Buy at the 107.81 level and sell at 112.50.
Apple remains in a downtrend on the daily chart and an uptrend on the 60 minute chart.
Watch list:
Bullish Stocks:? PCLN, GOOGL, AMZN, ORLY, SRCL, NKE, STZ, HD, CLB, CLX, TSO, MCD, DPS, CRM, VRSN, JOE, CNO
Bearish Stocks: BIIB, ILMN, JAZZ, VRTX, MELI, ALKS, ABBV, BBBY, CFG, PVH, UTHR
Be sure to check earnings release dates.
