October 19, 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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The short $15 call on ASNA expired Friday.? You have booked the profit on the position.
There is a lot of open interest on the November $14 and $15 calls for ASNA, so I will look to sell one of those series on a bounce.
All markets continued their bullish price action last week and followed through to the upside after the long range candles from the previous week.
The thrust of the price move was not as strong as the prior week and the volume was less.
Having said that, the S & P 500 did hit our objective of 2,031.30, closing just above it, at 2,033.11.
This also meant that the S & P 500 managed to? close above the 200 ema on the daily chart.
The main resistance level on the daily chart now is the midband, which is 2,052.96.? It will be important to watch how the market trades when it gets to that level.
This week there are some potential earnings movers with Chipotle (CMG) reporting after the close tomorrow.? And both AMZN and GOOGL reporting Thursday, after the close.
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 *
Minor level - 14.06
Major level - 12.50
The objective for the VIX remains at 12.50.
14.06 could provide some support.
S & P 500 Cash Index:?
Major level - 2,062.50
Minor level - 2,054.68
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
Objective to 2,031.30 achieved Friday. Look for support at 2,031 and 2,023.? 2,006 - 2007 area should also be strong support.
Nasd 100 (QQQ):?
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 objective for the QQQ should be 109.38.
106 - 107 area should be support.
I would expect some resistance at 110.16 area.
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.? Continues to trade in a range.
GLD:
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
Stalled right at the midband on the daily chart and closed Friday just under 112.50, at 112.49.
Two closes under 111.72 and the objective to the downside becomes 109.
XLE:
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
Two closes above 72.66 and the objective becomes 75.
75 also happens to be the midband on the daily chart.
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 between the 106 and 112 levels.
Apple remains in a downtrend on the daily chart and an uptrend on the 60 minute chart.
Watch list:
Bullish Stocks:? PCLN, GOOGL, AMZN, EXPE, NKE, HD, CLX, TSO, MCD, DPS, CRM, VRSN, JOE, DF, ADBE
Bearish Stocks: FLT, R, EXP, LSTR, TMH, CAB, MDP, FOSL, EAT, CYT, PCRX, GPS, RAX
Be sure to check earnings release dates.
