September 17, 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 - $1.25
VNR Long at $8.91
Short September $9 call @ $.50
X Long at $14
Short September 25th $14 Call @ $.54
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Today, at 2:00 EST is long awaited and highly anticipated Fed announcement regarding an interest rate rise.
Normally, I would be looking to trade a non directional position in front of an announcement like this, but the last few Fed meetings have turned out to be inconsequential.
Because of all the hype surrounding this announcement, this one maybe different.
At this point, I feel it is better to stand aside and wait and see what the market does in reaction to the Fed.
Having said that, the VIX has confirmed a move lower, which does keep me biased to the longside.
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 21.35, making it two straight days closing under 23.44.
The objective is down to 18.75.
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
The S & P 500 came within 3 points of the 2,000 level.
Look for lower levels to act as support.
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 at 107.09, just above the 107.03 confirming level.
A close above 107.03 today and the QQQ should 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 came back to test the 118.75 support level yesterday, closing at 118.80.
Two closes under 117.96 and the TLT should drop to 115.63.
The TLT should be volatile today with the Fed announcement.
A straddle on the TLT would make the most sense based on today's announcement.
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 at 107.31, above the 106.25 resistance level and the next confirming line of 107.03.
A close today 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 had a firm bullish move yesterday, closing at 65.32.
A close today above 63.28 and it should move up to 65.63.
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.?
The objective for Apple is to 118.75.? However, it is sitting right at the midband on the daily chart.? This area can often act as resistance.
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.
