September 22, 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

X Long at $14
Short September 25th $14 Call @ $.54
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The markets are selling off before the open.? As I write this, the S & P 500 is down almost 25 points.

This should produce a large down gap open.

Yesterday was an inside day for the S & P 500, which usually precedes a range expansion.

The magnitude of the move should replicate Friday's price action, which had a 33 point range.

The question is will the market find support at that level, which would be around 1,933 or continue down.

The major technical set up I am looking for is a retest of the lower band on the daily chart, which is around 1,892.? After violating the lower band, usually, a stock or market will retest it again.

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 should spike up at the open.

I would still expect 23.44 and 25 to act as resistance. If the VIX continues higher, expect the markets to keep heading down.

You want to see a bonafide reversal in the VIX from up to down before nibbling on the longside.

S & P 500 Cash Index:?

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 - 1,960.98 *
Minor level - 1,945.32 *
Major level - 1,937.50
Minor level - 1,929.68
Major level - 1,906.30
Minor level - 1,929 .68
Minor level - 1,914.12
Major level - 1,906.30

1,937.50 should be a support level for the S & P.
1,968 should act as resistance.

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

Look for resistance at 106.25 and support around 104.

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 would need two closes above 122.66 to confirm a move
up to 125.

It closed yesterday at 120.11, just above the minor 119.53 support level.? The TLT would need two closes under 119.53 to move down to 118.75.

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

A close today under 108.60 and the GLD should retest the 106.25 level.

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 closed back above 63.28 yesterday.? If it can close above that level today, it should move up to 65.63.

62.50 should act as support.

Apple:

Major levels for Apple are 118.75, 112.50, 106.25, 100, 93.75 and 87.50.
100 should be a major support level for Apple.?

A close today above 114.06 and Apple should move up to 118.75.
110.93 should act as support.

Watch list:

Bullish Stocks:? CHTR, RCL, SJM, ABMD, ALK, DY, ALKS, TJX,
HLF, BURL, CPB

Bearish Stocks: ALXN, JAZZ, PVH, FFIV, ZBH, MON, CAT,
JACK, MWE, DD, APA, FMC, XPO

Be sure to check earnings release dates.