October 30, 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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The S & P 500 is within 2 points of our 2,093.80 objective and looks set to take it out this morning.
After the run the markets have made, a pullback would not come as a shock.
The question is how can you anticipate where and when that will happen?
The first key will be to watch the VIX.? It did come within 30 cents of the major 12.50 level yesterday.
That level has been MAJOR support on the VIX for about two years now.
The other key will be to see how the S & P reacts around the next minor level, which is 2,101.62.
If it cannot close for two days above it, I would suspect a pullback is in order. So, this is something to watch closely.
As for earnings, it appears that LNKD will open up over $25 off their earnings.
And SolarCity appears heading for an 18% drubbing.
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
I am still expeting that 17 should act as resistance.
And 12.50 should eventually get hit.
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
Yesterday's high was within 1.30 points of the objective.
Should get hit today.
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 objective should be to 115.63.
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
The TLT sold off almost $2 and closed under the 121.88 level, at 121.86.
122.66 should be resistance.? Two closes under 121.09 and the TLT should drop to 118.75.
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 almost down the 109.38 level, closing yesterday at 109.72.? A violation and the GLD heads lower.
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 closed at 67.59 yesterday, just under the 67.97 level.
Objective still remains to 68.75.
?
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 did clear the midband yesterday and is up over $120.
Objective should be to $125.
Watch list:
Bullish Stocks:? PCLN, GOOGL, AMZN, ORLY, NOC, ATHN, FB, ATHN, HD, CLX, CLB, MCD, VRSN, CRM, V, JOE, DF, ADBE
Bearish Stocks: IBM, CMI, PVH, SWKS, WDC, DG, CAB, SCTY, VMW,? DKS, URBN, CYH
Be sure to check earnings release dates.