October 8, 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
ASNA Long at $14.20
Premium collected - $.30
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Today starts earnings season with Alcoa reporting after the close.
Earnings will be closely followed to see if they are strong enough to propel this market higher.
Yesterday, the upside objective for the S & P 500 was achieved.? The objective was 2,000 and the high was 1,999.31, or within 70 cents of the target.
The other major objective was if the XLE could hit 68.75 on this drive. That too was hit, with the XLE hitting a high of 68.94.
At this point, I would expect a pullback in the XLE to go no further than 62.50.? So, this is something to look for on a sell off.
Here are the key levels for the markets.
Stocks...
?
VIX:?
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 *
Major level - 12.50
The VIX hit a low of 18.33 yesterday, exceeding the objective by 42 cents.
A close today under 18.75 would indicate further movement to the downside.
Short term, the VIX is oversold.? For it to move up, it would have to get above 20.31 and close above it for two days.
S & P 500 Cash Index:?
Major level - 2,031.30
Minor level - 2,007.82
Major level - 2,000.00
Minor level - 1,976.62 *
Major level - 1,968.80
Minor level - 1,945.32 *
Major level - 1,937.50
2,000 objective hit.? Support should be at 1,976.62 and 1,968.
Based on the speed of the move off the low at 1,875, a pullback would not be out of the question.
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 hit 105.86, just .39 under the 106.25 objective.
I would expect support at 105.46 and 103.91.
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 is still holding support at the 122.66 minor level.
It should try and push up to 125.
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 closed again above the 109.38 level.
Two closes above 110.16 and the objective should be to 112.50.
108.60 should 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 68.75 objective was hit yesterday.
65.63 should be support at this time.
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.?
110.93 is the downside level to 106.25 and yesterday, Apple closed at 110.78.
A close today under 110.93 and Apple should test 106.25.
Apple remains in a downtrend on the daily chart.
Watch list:
Bullish Stocks:? ORLY, PNRA, AAP, STZ NKE, LEA, VRSK, EXR, MCD, VRSN, ATO, SBUX, CBOE,? CVC, PGR, RAI
Bearish Stocks: BIIB, ILMN, UTHR, MDVN, R, FOSL, ADSK, RAX, ESPR, CUDA, GPS
Be sure to check earnings release dates.