September 18, 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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The long awaited Fed announcement ended up being no action.

As I mentioned yesterday, these are the type of market wide news events that can create excess volatility.

And I said, you would be better off standing on the sidelines for this one and that proved to be the correct move, unless you are a nimble intra day trader.

The SPY ran up almost 3 points after the announcement and then promptly sold off about the same amount.
The TLT ran up about 1 1/2 points off the Fed announcement.

These were some decent intra day swings.

There is one open position that expires today and that is the short $9 call on VNR.? VNR closed yesterday just over $9, at $9.03, so expect further instructions later today.

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
Minor levle - 17.18

The VIX dropped yesterday and stopped just under 18 and rallied up to 23.33, just one penny under the 23.44 minor resistance level.

I would expect 23.44 and 25 to act as resistance.

S & P 500 Cash Index:?

Major level - 2,031.20
Minor level - 2,023.40
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 topped out at 2,020.86 yesterday after the Fed announcement and dropped to 1,986.

It closed just under the 1,992.18 minor support level.

Look for lower levels to act as support. And look for the VIX to reverse to the downside before initiating any long positions.

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 stopped at 108.72 yesterday, before giving back those gains.

This was just 12 cents above the 108.60 minor level.

The QQQ closed at 107.13, which was above the 107.03 confirming level, so the objective is 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

Objective is back up to the 121.88 level.
Lower levels should act as support.

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 109.38 level should be the objective for the GLD.

107.03 should act as 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

The XLE did take out the 65.63 objective yesterday, hitting a high of 66.44.

Look for support at the lower levels.

It will now need two closes above 66.41 to move up to 68.75.

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.? Selling off against the midband on the daily chart.

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.