October 20, 2016 - MDT Pro Tips A.M.
MDT AlertWhile 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.
GOGO? Long at $19.93
Total Premium Collected? $1.95
ASNA Long at $14.20
Total Premium Collected $.75
DUST Long $4.50
Total Premium Collected? $.70
FCX Long $12.45
Total Premium Collected? $.24
CIEN Long Oct 21-$22 Call? $1.39
Total Premiums Collected? $.74
KR Long Jan $30 Call? $1.30
KR Short Jab $33.75 Call? (.25)
DYN Long at $12.55
DYN Short Oct $12.50 Call (.48)
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After gapping up yesterday, the S & P 500 flirted with the 2,140.62 level most of the day.? And it actually managed to close above it at 2,144.29.
This now sets up a scenario where a close today above 2,140 and the objective should be back to a retest of the major 2,187.50 level.
Having said that, there is still overhead resistance in the 2,152 to 2,155 area.? From a technical standpoint, clearing that area would be bullish.
With all the discussion centered on the bullish scenario, it would be prudent to mention the bearish conditions.
On yesterday?s webinar, I mentioned that as the VIX was dropping, support should be around 14.16 to 14.37. Those price levels just happen to be the mid bands on the 30 minute and 60 minute charts for the VIX.
And to see further up movement in the markets, you want to see if the VIX can break under the 14.16 to 14.37 level.
As it turned out, the VIX closed right at 14.69, after finding some support at the previously identified support area.
The key for today will be to see if the VIX can break under this area.? If it can, I would expect the market to continue up.
Pre open, the S & P 500 is trading slightly to the downside, after trading to the upside most of the morning.
Based on where the S & P is trading, it should open right around the 2,140.62 level. Watch to see if the market can reclaim this level, or if it fails.? As usual, a reversal to the downside on the VIX against resistance should be the clue the markets head up.
Continue to monitor the levels for entry points.
Here are the Key Levels for the Markets:
$VIX:
Major level - 18.75
Minor level - 17.96
Minor level - 16.41 *
Major level - 15.63 *
Minor level - 14.85
Minor level - 13.28
Major level - 12.50
Minor level - 11.72
The VIX closed at 14.69 yesterday. ?This was under the 14.85 level, so a close today under that level and the objective should be to 12.50.
15.63 should offer resistance.? 15.23 could also offer minor resistance.
14.06 did offer support yesterday.?
$SPX:
Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12
Major level - 2,187.50
Minor level - 2,171.88
Minor level - 2,140.62 *
Major level - 2,125.00 *
Minor level - 2,109.38
Minor level - 2,078.12
Major level - 2,062.50
The 2,153 to 2,156 area should offer resistance.?
2,140.62 should be a key level to watch.? 2,148.44 is also a minor resistance level, which happened to be yesterday?s high.
QQQ:?
Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75 *
Minor level - 117.97 *
Minor level - 116.41 *
Major level - 115.63 *
Minor level - 114.84
Minor level - 113.28
Major level - 112.50
117.58 should offer support.? If it holds that level, look for a move higher.? 30 minute chart has moved into an downtrend, so market should be volatile.? 60 minute chart still is on an uptrend.
The QQQ needs to clear 118.75 to move higher.
TLT:?
Major level - 137.50
Minor level - 136.72
Minor level - 135.16
Major level - 134.38
Minor level - 133.60
Minor level - 132.03 *
Major level - 131.25 *
Minor level ? 130.46
Minor level ? 128.91
Major level ? 128.13
?Objective is still back to a retest of 134.38.? The TLT closed at 132.97.
132.03 should offer support.
GLD:
Minor level - 124.22
Minor level ? 122.66
Major level ? 121.88
Minor level ? 121.10
Minor level ? 119.53 *
Major level ? 118.75
Minor level ? 117.97
The GLD is close to the objective of 121.88.? Watch to see if the GLD reverses.
XLE:
Major level - 75.00
Minor level - 74.22
Minor level - 72.66
Major level - 71.88
Minor level - 71.10
Minor level - 69.53 *
Major level - 68.75 *
Minor level - 67.96
Minor level - 66.41
Major level - 65.63
The XLE got just above 71.10 before selling off. Minor support should be 69.53.
Objective still to 71.88.
FXY:
Major level: 96.88
Minor level: 96.49
Minor level: 95.70
Major level: 95.31
M
inor level: 94.92
Minor level: 94.14
Major level: 93.75 *
Minor level: 93.36
Minor level: 92.58 *
Major level: 92.19
Minor level: 91.80
Minor level: 91.02
Major level: 90.63
The FXY came to within 19 cents of the 93.75 objective.? If the FXY can clear 93.75, it should head higher.
Support should be at 92.19 and 92.58.
AAPL:
Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.
115.63 should offer support for Apple.? A pullback to that level should be a great area to buy. Overbought on a daily basis, so I would not chase Apple.? Wait for a pullback.
WATCH LIST:
Bullish Stocks: NTES, ACN, AAPL, FANG, KS, ROST, MENT, DRI
Bearish Stocks:? REGN, AGN, BIDU, CLX, ANTM, CELG, DIS, VRTX, GILD, ESRX
Be sure to check earnings release dates.
