September 11, 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
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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The key resistance level for the VIX was between 26.56 and 26.77.
26.56 was the minor resistance line and 26.77 was the upper extreme bollinger band on the daily chart.
The VIX took an unexpected rally late Wednesday, which resulted in driving stocks down a bit more.
Yesterday, the VIX rallied up to a high of 27.22 before failing and dropping.
When the VIX failed at 27.22, the S & P happened to stop at 1,937.19, which was within 31 cents of the 1,937.50 line.
Now that the VIX has closed back within the upper band, I would expect that level to act as resistance.?
Pre-open, the markets are showing a pullback.? I would still be inclined to look for the VIX to fail at a resistance level and use that as a trigger to get long.
?
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.
On the downside, 23.44 is the minor support level.
Two cloes under 23.44 and the VIX should drop to 18.75.
As I mentioned before, the upper band on the daily chart is 26.77.
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 - 1,929 .68
Minor level - 1,914.12
Major level - 1,906.30
1,945.32 is the key level at the moment.? A close today above that price and the objective would be to 1,968.80.
Nasd 100 (QQQ):?
Major level - 112.50
Major level - 109.38
Minor level - 107.03
Major level - 106.25
Minor level - 105.46
Minor level - 103.91 *
Major level - 103.13
Minor level - 102.34 *
Major level - 100
103.13 should act as support.? If it can't, I would expect 102.34 to.
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 *
Minor level - 119.53 *
Major level - 118.75
The TLT continues to trade between the 121.88 and 118.75 levels.
A close today under 121.09 and the TLT should drop to 118.75.
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
106.25 seems to be strong support for the GLD.
It would still need two closes above 107.03 for a move up to 109.38.
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 is staying above the minor 63.28 level.? 62.50 should be a strong level of support.
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.?
I would expect 110.90 to be support.
On a bounce up today, look to close out the calls.? I will send a separate email with instructions.
Watch list:
Bullish Stocks:? TPX, RCL, DY, BGS, GOOGL, BWLD, GD, COST, UHS, BDX, MNST, VRTX, PCLN
Bearish Stocks: CMI, RL, BIDU, CAT, WYNN, DECK, MOS
Be sure to check earnings release dates.