September 16, 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

?.......................................................................................

Yesterday, the S & P 500 cleared the 1,968.80 objective by 10 points, closing at 1,978.09.

It managed to close above the next confirming line, which is 1,976.62.? A close today above that level and the objective now becomes 2,000.

All eyes will be on the Fed these next two days to see what they do.

We could see a narrow range until the results are announced.

The shorter term charts continue to firm up and are showing some strength.

The VIX remains under the upper extreme bollinger band on the daily chart.

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

The VIX closed yesterday at 22.54,? just under the 23.44 confirming line.? A close today under 23.44 and it should drop to 18.75.

Watch this if you intend on taking a position before the Fed announcement.

A close back above 23.44 and it would have to reset.

However, higher levels should act as resistance.
?
Look for resistance at 26.56 and 25.?

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

Objective of 1,968.80 achieved and exceeded yesterday.

Minor level of 1,992.18 should offer some resistance. And 1,976.62 should offer support.

A close today above 1,976.62 and the objective is back to 2,000.

Nasd 100 (QQQ):?

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 QQQ closed yesterday just above the 106.25 level, at 106.49.

The QQQ would need two closes above 107.03 to move up to 109.38.

Lower levels should act as support.

TLT:?

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
Minor level - 117.96
Major level - 115.63

The TLT collapsed yesterday with the impending announcement.

The 118.75 level should be support.? If it breaks under that level, 117.96 should be the key level to watch.

Two closes under 117.96 and the TLT should drop to 115.63.

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 yesterday back under 106.22, at 105.90.

105.46 is the confirming level back to 103.13.

Two closes above 107.03 and the GLD should move up to 109.38.

105.46 should act as support.

It is getting closer to a long term bottom.

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 pushed up yesterday, but the action was not very strong, however it did cloes above 63.28.

If it can close above 63.28 today, the objective is up to 65.63.

Patience is key at the moment.

Apple:

Major levels for Apple are 118.85, 112.50, 106.25, 100, 93.75 and 87.50.
100 should be a major support level for Apple.?

At this point, 114 should be support, with an objective to 118.75.

Watch list:
Bullish Stocks:? BWLD, MLM, INCY, STZ, VMC, RCL, ALK, DY, GAS, MOH, CTB, TPX, LB, JBLU

Bearish Stocks: ALXN, JAZZ, BIDU, MMM, FFIV, KMB, MON, WYNN, BG, DECK, QCOM, CAT

Be sure to check earnings release dates.