October 29, 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 - $.80
X Long at $14
Premium collected - $.89
Short Nov 6th-$14 Call - $.35
ASNA Long at $14.20
Premium collected - $.30
APA Long April 2016 $45 call - $5.00
APA Short Nov 6th-$48 Call - $.45
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Quite frankly, I did not consider yesterday's Fed Meeting as having much consequence for the markets.
Unless you were trading short term.
At 2:00 EST, the VIX dropped to a low of 12.80 and rallied to a high of 15.73 in about 20 minutes.
At the same time, the S & P stalled at 2,084.52 and dropped to 2,063.11.? Please note that once again, the 2,062.50 level held as support.
After that, the S & P reclaimed the sell off and ran up to a high of 2,090.35.
So, basically, the S & P, which had been moving up all day, gave up about 21 points, only to recover and move back up 48 points.
These are great intraday swings if you know what to look for.
They are terrible if they serve to shake you out of a position.
Because you are reading this, you knew that the logic dictated buying when the S & P dropped to just above the 2,062.50 level.
Essentially, the Fed keeps teasing us as to when they will begin to raise rates.
Imagine what the intraday moves will be when they finally do?
Companies announcing earnings continue to have some large moves.
It looks like BWLD is set to open gapping down over $26 in the pre market.
And GPRO looks set to open down almost 18%.
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 VIX came within 30 cents of the 12.50 objective yesterday, closing at 14.33.
I am still looking for 17 to act as resistance.
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 S & P 500 came within 3 points of the 2,093.80 objective.
I would expect support at 2,085 and 2,070.
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 within 83 cents of the 114.85 minor level.
Support should be at 113.28 and 112.50.
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.
The TLT continues to trade in a tight range between 125 and 121.88.
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 would need two closes under 111.72 to move down to 109.
The GLD is in an uptrend on the one and two hour charts.? It it still above the 109 support 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
Objective should be to 69.
?
Apple:
Major levels for Apple are 125, 118.75, 112.50, 106.25, 100, and 93.75.
106 should be a major support level for Apple.?
Apple reported yesterday and closed up just over $4.
It is sitting right at the mid band on the daily chart.
If it can clear the midband, it would be bullish for Apple.
A failure here and it should head down.
Watch list:
Bullish Stocks:? PCLN, GOOGL, AMZN, ORLY, GPN, ATHN, FB, 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.
