October 28, 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
NCR Short Jan 16 $29 Call
Net Debit - $.30
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, the S & P 500 flirted with the major 2,062.50 level all day, before closing just above it 2,065.89.
The nice part about knowing these levels in advance is that you can go to a shorter time-chart and buy against the levels when you get an oversold condition.
There were a few opportunities to do that yesterday.
Today is our webinar and I will demonstrate how to project how big a stock should move off their earnings.
I will show two examples of companies that reported last night.
As for the markets, the S & P is holding above the mid band and has paused after the run up.
I would liked to see the VIX retest the 17 level, but that may not happen.
Here are the key levels for the markets.
?
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.
The VIX ended up closing at 15.43.? For the market to move up, the VIX should drop back under 14.06.? If it holds above 14.06, the markets should pull back.
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
The objective should be to 2,093.80.
Support at 2,062.50 seems to be holding.
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 is 20 cents under the 113.28 level.
Two closes above that level and the objective becomes 115.63.
Support should be at 112.50 and 111.
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
For the TLT to move up, it will have to clear the 125 level.
Now that a rate hike seems to be off the table, look for the TLT to break 125.
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 is trying to recapture the 111.72 level and closed yesterday at 111.68.
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 drop to the 65.63 level, hitting a low of 65.11 yesterday, before settling at 65.79.
Two closes above 66.41 and it should move up to 69.
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 closed down yesterday at 114.55.? Downside target should be back to 112.50.
Apple reported last night and is up $2 pre market. I would expect 117.20 to be resistance.
Watch list:
Bullish Stocks:? PCLN, GOOGL, AMZN, ORLY, NKE, GPN, ATHN, HD, CLX, CLB, MCD, ACN, CRM, VRSN, JOE, DF, ADBE
Bearish Stocks: CMI, PII, PVH, SWKS, WDC, DG, CAB, SCTY, VMW,? DKS, URBN, CYH
Be sure to check earnings release dates.