October 16, 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 - $.90

X Long at $14
Premium collected - $.54
Short Nov 6th-$14 Call - $.35

ASNA Long at $14.20
Premium collected - $.30
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Before I begin today's daily update, I want to mention?that there is one position that expires today.

That is the short $15 call on ASNA.? ASNA is trading?just under $13, so it appears highly likely that the?calls will expire today and you will keep your stock.

I will update you in the event that anything changes.

In Monday's update, I mentioned how based on the?weekly charts, there was strength in the markets.

And that based on Friday's price action, I would?expect a pullback at the beginning of this week.

And that is how the week has traded, with a strong?move to the upside yesterday.

The levels worked almost perfectly yesterday, with the?S & P 500 running up to a pivot high of 2,007.86?before a 10 point pullback ensued.

Our level, as you know is 2,007.82.

Then the S & P reversed and ran up to a high of?2,024.15, just 80 cents above the minor level of?2,023.35.

That was the level I mentioned yesterday which should?offer some resistance.

This of course, was all set up with the failure of the VIX?to get through the 18.75 level on Wednesday.

The VIX closed at 16.05, which makes the downside?target back to the 12.50 level.

Here are the key levels for the markets.

Stocks...
?
VIX:?

Major level - 25.00
Minor level - 23.44
Minor level - 20.31 *
Major level - 18.75
Minor level - 17.18 *
Major level - 12.50

The VIX has had two closes under 17.18,?so the objective should be to 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 S & P 500 closed at 2,023.86, just above?the minor level.

Objective still to 2,031.30.? Look for lower?levels to act as support.?

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 closed at 107.67.

A close today above 107.03 and the objective becomes 109.38.
Lower levels should be support.

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 is struggling to take out the 125 level.

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 closed at 113.29, just one penny above?the 113.28 level.

115.63 should be the objective.

The GLD is sitting right at the midband on the?daily chart and usually offers resistance.? For the?move up to continue, it would have to close above?the midband, which is 113.33.

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 reversed back up and closed at 69.14?yesterday. Two closes above 69.53 and the?objective becomes 71.88.

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 bounced up and closed at 111.86 yesterday, just shy of the?112.50 level.

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, ATHN, NKE,?HD, CLX, TSO, MCD, DPS, CRM, VRSN, JOE, DF, ADBE

Bearish Stocks: BIIB, FLT, GILD, DLTR, EXP, LSTR,?FOSL, EAT, CYT, PCRX, GPS, RAX

Be sure to check earnings release dates.