October 27, 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 - $.89
Short Nov 6th-$14 Call - $.35
ASNA Long at $14.20
Premium collected - $.30
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Yesterday saw a pause in this recent bull move, with the S & P 500 down just under 4 points.
However, it still traded above the mid band, which as I mentioned yesterday, should act as support.
The VIX should give us a clue as to when the up move will continue.
The VIX moved up .83 yesterday and closed at 15.29.
The key resistance level should be 17.19.
There were two large moves off earnings yesterday.
TREE jumped $22.98 or 23.45%.? And CTRP popped $16.44 or 22.11%.
Apple reports today after the close.? This should be closely followed.
And BIDU and LNKD report later this week.
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 target remains back to 12.50.
The 17 level should act as resistance.
Look for the VIX to reverse to the downside as the indication the markets should head up.
S & P 500 Cash Index:?
Minor level - 2,101.62
Major level - 2,093.80
Minor level - 2,085.98
Minor level - 2,070.33
Major level - 2,062.50
Minor level - 2,054.68
Minor level - 2,039.12 *
Major level - 2,031.30
Major level - 2,000.00
I mentioned yesterday that a close above the 2,070 level would mean the objective should be to 2,093.80.
The S & P 500 did in fact close at 2,071.18, so I would expect a move higher.
Support should be at 2,062.50.
Nasd 100 (QQQ):?
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
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
The QQQ closed at 112.85, .35 above the 112.50 level.
Support should be at 111.70 and 110.
Next level to the upside is 113.28.? Two closes above 113.28 and the objective becomes 115.63.
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 continues to trade between the 125 and 121.88 levels.
For the TLT to move up, it will have to clear the 125 level.
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 have two closes under 111.72, so a move back to 109 would not be out of the question.
The GLD is in an uptrend on the one and two hour charts.? Support should be around the 109 area.
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
The XLE did hit a high of almost 69 on Friday.
It would need two closes above 69.53 to move up to 72.
The XLE closed at $66.59 yesterday.? A close today under 67.97 and it should retest 65.63.
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 had a strong move Friday, taking out the 118.75 level.
Two closes above 120.31 and the objective should be 125.
Two closes under 117.18 and it should drop to 112.50.
Apple sold off against the midband on the daily chart.
They do report earnings after the close today.
Watch list:
Bullish Stocks:? PCLN, GOOGL, AMZN, ORLY, NKE, GPN, HD, CLX, CLB, MCD, ACN, CRM, VRSN, JOE, DF, ADBE
Bearish Stocks: AGN, PVH, DECK, FOSL, ABBV, CAB, SCTY, VMW,? DKS, URBN, CYH
Be sure to check earnings release dates.