October 22, 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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Yesterday ended with about a 12 point pullback in the S & P 500.
After the run the market has had, this is not unexpected.
For the markets to continue up, I would not expect any pullback to move below the 1,976 area.
But there is still overhead resistance at the 2,055 area.
If you do trade shorter timeframes, you have to appreciate that once again, the high on Tuesday came EXACTLY on our resistance.?
Isn't it nice to have this information before hand?
The VIX will give us the clue that the markets should head up.
A test of 17.19 seems to be the likely scenario.
Earnings continue to heat up and produce some big moves.
Yesterday, CMG dropped $39.96 and VMW had a move of $13.34.
Also, PII dropped $12.27 or 10.22%.
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 VIX bounced up yesterday and closed at 16.70.
Resistance should be at 17.18.
If the VIX reverses to the downside, that will be the indication the markets should head up.
If the VIX breaks through 17.19, look for the markets to head down.
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
Minor level - 1,992.19
If the S & P closes under 2,031.30 today, look for a move back to 2,000.
Yesterday's high was exactly the minor resistance level of 2,039.12.
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
Support should still be at the 107 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 jumped up yesterday and closed at 124.05.
Still struggling to break the 125 level.? If it can take out125,? look for two closes above 125.78 or it to head up to 128.13.
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
The GLD did bounce off the midband on the daily chart.
It closed one penny above the 111.72 level yesterday.
Looks like it want to head back up.
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
A close today under 67.96 and it should drop to 65.
If the XLE reclaims the 67.97 level, look for a move higher.
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 hit 115.58 before pulling back.
A move to 118 level should be expected.? Support should be at 112.50.
Watch list:
Bullish Stocks:? PCLN, GOOGL, AMZN, ORLY, NKE, GPN, HD, CLX, V, MCD, DPS, CRM, VRSN, JOE, DF, ADBE
Bearish Stocks: ILMN, ZBRA, EXP, FOSL, LSTR, KSS, CAB,? VMW, SWKS, DKS, STX, HAE, CFX, ESPR, PCRX, CUDA
Be sure to check earnings release dates.
