September 10, 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 $32 Call
Net Debit - $1.70

VNR Long at $8.91
Short September $9 call @ $.50

WDC Long Sept 11th $83 Call
WDC Long Sept 11th $85 Call

AAPL Long Sept 11th $112 Call
AAPL Long Sept 11th $116 Call

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Just as it seems that a major bottom is setting up, the market gives back all it's gains on the day.

Extreme volatility is becoming the new normal.

The key today will be to see if the VIX can close back above the upper band on the daily chart.? That level is 26.64 and the VIX closed at 26.23 yesterday.

Also, there is a minor resistance level for the VIX at 26.56.

A lot of stocks seem to be setting up on shorter term charts, however, pre open the markets are selling off.

If the VIX does not reverse, expect further movement to the downside.

Now onto the markets.

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
Major level - 18.75

At this point, 26.56 should be resistance.? Two closes above 26.56 and the objective is to 31.25.

As I mentioned before, the upper band on the daily chart is 26.64.

If it can close above that, expect further movement to the downside.?? A failure there and the markets should head up.

S & P 500 Cash Index:?

Minor level - 2,007.82
Major level - 2,000.00
Minor level - 1,992.18
Minor level - 1,976.62 *
Major level - 1,968.80
Minor level - 1,945.32
Major level - 1,937.50
Minor level - 1,914.12
Major level - 1,906.30

The S & P rallied up to within four points of the 1,992 level before giving back all it's gains.

It is now back to testing the 1,937.50 level.

If this level cannot hold, expect a move back to 1,906.

Nasd 100 (QQQ):?

Major level - 112.50
Major level - 109.38
Major level - 106.25
Minor level - 103.91 *
Major level - 103.13
Minor level - 102.34 *
Major level - 100

The 106.25 objective was hit yesterday, with the QQQ hitting a high of 106.31.

Then it reversed and closed just under the 103.91 level.

The minor level of 102.34 should act as support.

TLT:?

Major level - 131.25
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 *
Major level - 118.75

The TLT continues to trade between the 121.88
and 118.75 levels.

I don't expect much movement until next week when the Fed makes their announcement.

Short term timeframes have moved into a downtrend.

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 moved back to the 106.25 support line.
If this cannot hold, look for a move back to 103.13.

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

The XLE got above 65.63, but could not hold the level, closing at 63.57 yesterday.

Look for a move back to 62.50.

Apple:

Major levels for Apple are 112.50, 106.25, 100, 93.75 and 87.50.
100 should be a major support level for Apple.?

A close today under 110.93 and Apple should drop to 106.25.? Based on how Apple trades today, look for an adjustment to this position.

Watch list:
Bullish Stocks:? DY, BGS, GMCR, GOOGL, BWLD, GD, COST, UHS, BDX, MNST, VRTX, PCLN

Bearish Stocks: LNKD, FFIV, BIDU, IBM, MMM, CMI, RL

Be sure to check earnings release dates.