October 5, 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 15 $27 Call
NCR Short Jan 15 $29 Call
Net Debit - $0.70
X Long at $14
Short September 25th $14 Call @ $.54
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The first week of October closed out with a very dismal Jobs report which many now believe will result in the Fed postponing a rate hike.
As a result, the market posted an intraday reversal that clears the way for further movement to the upside.
The S & P 500 had almost a 60 point range on Friday.
It opened at 1,921 and dropped about 30 points to a low of 1,893 before rallying to hit 1,951.
This Thursday, after the close, Alcoa report earnings. Alcoa traditionally begins the earnings season.
The webinar has been rescheduled, and will be today at? 12:00 EST. I hope to see you on the webinar.
Here are the key levels for the markets.
Stocks...
?
VIX:?
Minor level - 32.81
Major level - 31.25
Minor level - 29.68
Minor level - 26.56 *
Major level - 25.00
Minor level - 23.44 *
Minor level - 20.31
Major level - 18.75
Minor level - 17.18
The VIX had two closes under 23.44, so the downside objective should be to 18.75.
Look for higher levels to act as resistance.
S & P 500 Cash Index:?
Major level - 1,968.80
Minor level - 1,945.32 *
Major level - 1,937.50
Minor level - 1,929.68
Minor level - 1,914.12
Major level - 1,906.30
A close above 1,945.32 today and the objective should be to 1,968.80.
Look for support at 1,945 and 1,937.
Nasd 100 (QQQ):?
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
Minor level - 102.35
Minor level - 101.78
Major level - 100.00
The QQQ closed Friday at 104.01, or just above the 103.91 level.? A close today above 103.91 and the objective becomes 106.25.
I would expect support at 103 and 102.35.
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 did take out the 125 level on Friday, but could not close above it.
Support should still be at the lower levels.
GLD:
Major level - 112.50
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
The GLD missed the 109.38 level by 6 cents on Friday.
I would expect 107 to be support.
XLE:
Major level - 68.75
Minor level - 66.41
Major level - 65.63
Minor level - 64.84
Minor level - 63.28 *
Major level - 62.50
Minor level - 61.72
Minor level - 60.16
Major level - 59.38
The bottom band and the 59.38 level held as support on the XLE.? And it had a rally of over 2.5% on Friday.
The key now is if it can close above 63.28 today.
If it can, it should move up to 65.63.
For the long term view, I would like to see the XLE hit 69 on this drive.? If it can, then a major bottom could be in place.
?
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.?
107.81 is the upside confirming level just above 106.25 and that is where Apple stopped on Friday.
A close above it today and it should move up to 112.50.
Watch list:
Bullish Stocks:? ORLY, PNRA, NKE, EXPE, CLX, RAI, MCD, VRSN, ATO, CBOE,? CVC, PGR
Bearish Stocks: FLT, CMI, ASH, PVH, CAH, LSTR, SLB, URI, BBBY, FOSL, PNR, QRVO
Be sure to check earnings release dates.
