October 6, 2016 - MDT Pro Tips A.M.
MDT AlertWhile 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.
GOGO? Long at $19.93
Total Premium Collected - $1.95
ASNA Long at $14.20
Total Premium Collected - $.75
ETE Long $14.05
Total Premium Collected - $2.80
DUST Long $4.50
Total Premium Collected - $.70
FCX Long $12.45
Total Premium Collected - $.24
CIEN Long Oct 21-$22 Call - $1.39
Total Premiums Collected - $.83
Short Oct 21-$23.50 Call - ($.25)
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Yesterday, the markets bounced up to close at 2,159.73.? On the day, the S & P 500 closed up 9.24 points.? However, the daily price action formed an inside day, with a lower high and a higher low.
As I have been saying, trading is still quiet ahead of the Non Farm Payroll to be released tomorrow morning at 8:30 AM EST.
The price level I have mentioned as possible resistance is the 2,164.53 level and that is where the market traded to.? That level needs to be cleared before it can head higher.
Besides having an inside day yesterday, the range for the day was only 8.80 points. This is less than half of the average true range of 19.93 points.
A range expansion is coming.? The question is will the Non Farm Payroll report be the trigger event to cause that expansion.
As for the VIX, it gapped down and closed on the day at 13.65.? It is still holding above the minor 13.28 level.? With the VIX back down to it?s major support level, we have to be mindful that a sell off could happen.
Here are the key levels for the markets.
$VIX:
Major level - 18.75 *
Minor level - 17.96 *
Minor level - 16.41
Major level - 15.63
Minor level - 14.85
Minor level - 13.28
Major level - 12.50
Minor level - 11.72
The VIX is still holding above the 13.28 level.? Watch if it holds as support; if not, expect a move lower.
14.06 should also offer resistance.
Minor levels are 12.89 and 13.67.
S & P 500 Cash Index ($SPX):
Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12
Major level - 2,187.50
Minor level - 2,171.88
Minor level - 2,140.62 *
Major level - 2,125.00 *
Minor level - 2,109.38
Minor level - 2,078.12
Major level - 2,062.50
Minor resistance is at 2,164.10 and 2,060.? 2,152.30 should offer minor support. If the S & P 500 can hold above 2,152, I would expect a bounce tomorrow.? If it closes under this level, a move back to 2,140 could be in the making.
?
Nasd 100 (QQQ):?
Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75 *
Minor level - 117.97 *
Minor level - 116.41 *
Major level - 115.63
Minor level - 114.84
Minor level - 113.28
Major level - 112.50
The QQQ continues to be the stronger market.? In fact, the short term 60 minute chart for the QQQ has moved into an uptrend. The QQQ finally closed above the 118.75 level.
It closed at 118.79.? I would like to see two consecutive closes above 118.75 to confirm that this level has been exceeded.
118.36 should offer minor support.
TLT:?
Major level - 140.63
Minor level - 139.85
Minor level - 138.28
Major level - 137.50 *
Minor level - 136.72 *
Minor level - 135.16
Major level - 134.38
Minor level - 133.60
Minor level - 132.03
Major level - 131.25
I mentioned on yesterday?s webinar that 134.38 should offer support for the TLT.? And it closed at 134.58.
The TLT should not drop below 132.81.? If the TLT bounces up to 136.72, that should confirm a bottom at the 134.38 level.
GLD:
Minor level - 125.78 *
Major level - 125.00 *
Minor level - 124.22
Minor level ? 122.66
Major level ? 121.88
Minor level ? 121.10
Minor level ? 119.53
Major level ? 118.75
A close today under 121.10 and the GLD should continue to drop to 118.75.? 121.88 should offer resistance.? The GLD is oversold on a short term basis, so a bounce can be expected.
XLE:
Major level - 75.00
Minor level - 74.22
Minor level - 72.66
Major level - 71.88
Minor level - 71.10
Minor level - 69.53 *
Major level - 68.75 *
Minor level - 67.96 *
Minor level - 66.41
Major level - 65.63
The XLE continues to inch up to the 71.88 objective.? It closed yesterday at 70.91.
The 60 minute chart is very close to moving into an uptrend and when that happens, it should fuel further upside for the XLE.
Minor support is at 70.31.
FXY:
Major level: 96.88
Major level: 96.09 *
Major level: 95.31
Major level: 94.53
Major level: 93.75
Major level: 92.97
Major level: 92.19
A break under 92.97 and the FXY should continue down.? Watch this level in the short term.
Should 92.97 be violated, a move down to 90 would be expe
cted.
AAPL:
Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75,? and 87.50.
Apple continues to trade in a tight range, however it is holding the 112.50 level.
111.72 should offer minor support. 113.28 should be minor resistance.
Apple still has not had two closes above 113.28.? It managed to close above it one day, but not two consecutive days.? Should that happen, I would expect a move up to 118.75.
If it fails, a move back to 109.38 would be expected.
Watch list:
Bullish Stocks: PCLN, AMZN, ILMN, TAP, UNP, WDAY, CAT, EA, SWKS, QCOM, NVDA, APA, WDC, DNKN, STX, AZPN
Bearish Stocks:? AGN, GS, ALXN, ESRX, DIS, CELG, VFC, SBUX, WFC, BBBY, VRX, ACOR
Be sure to check earnings release dates.