October 15, 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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On yesterday's webinar I discussed how the markets should have reacted when the VIX hit 18.75 and moved down.
The result was about a 12 point move up in the S & P 500.
And this was without me having the benefit of looking at live charts.
I bring this up because the 18.75 level is still in play for the VIX.? And late yesterday, the VIX rallied up and stalled at 18.65 and proceeded to head down.
And this morning, before the open, the markets appear to be headed for a higher open, with the S & P 500 futures up over 10 points.
Yesterday, I pointed out how the 18.75 level for the VIX should offer resistance and it has.
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.
Same as yesterday.? Higher levels should act as resistance.? Two closes under 17.18 and the objective becomes 12.50.
S & P 500 Cash Index:?
Major level - 2,062.50
Minor level - 2,039.12
Major level - 2,031.30
Minor level - 2,023.35
Minor level - 2,007.82 *
Major level - 2,000.00
Minor level - 1,992.18
Minor level - 1,976.62
Major level - 1,968.80
The active objective should be 2,031.30.??
I would expect some resistance at 2,023.
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
The QQQ continues to trade around the 106.25 level, closing at 105.93.
Two closes above 107.03 and the objective becomes 109.38.
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 within 50 cents of the 125 objective yesterday.
It would have to close above 125.78 to move higher.
121.88 remains strong support.
GLD:
Major level - 115.63
Minor level - 114.85
Minor level - 113.28
Major level - 112.50
Minor level - 110.16
Major level - 109.38
The GLD took out the 112.50 objective and closed above the minor 113.28 level.
A close above 113.28 today and the GLD should hit 115.63.
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
A pullback to 65 area would not be out of the question.? Support should be at 65.
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, SRCL, NKE, HD, CLX, TSO, MCD, DPS, CRM, VRSN, JOE, CNO
Bearish Stocks: BIIB, FLT, ILMN, ALNY, GILD, DLTR, BBBY, CFG, PVH, UTHR, ALKS, FOSL, ABBV
Be sure to check earnings release dates.