September 23, 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 S & P 500 had a 32 point range yesterday.? This nearly replicated the 36 point range from Friday.

By estimating the size of the daily range, you can get a general idea as to where the low for the day should be.

I was looking around 1,933 as the low and it happened to come in at 1,929.22.? After that bottom, the S & P rallied back to 1,945.

This was a move of 16 points.?

I also felt that 25 and 23.44 should be resistance on the VIX. The VIX hit a high of 23.79 yesterday.

And it traded around 23.44 for about 2 hours before it finally broke down.

This coincided with the S & P bottoming for the day before it headed up.

Now does the market go from here?

I still feel that ultimately the S & P 500 will retest the bottom band on the daily chart, which is around 1,890.

Based on that, the market is still about 50 points away.

And we have not had a selling climax during this recent sell off.? But, if the volume continues to dry up it would have bullish implications as it could be setting up a double bottom at the next low.

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 *
Minor level - 20.31
Major level - 18.75
Minor levle - 17.18

The VIX closed yesterday at 22.44, just under the 23.44 level.? I would expect 23.44 to act as resistance.

A close today under 23.44 and the VIX should head down to 18.75.

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

The 1,937.50 level did act as support for the S & P.
It hit a low of 1,929 before reclaiming 1,927.50 and closing at 1,942.74.

The S & P would need two closes above 1,945 to move up to 1,968.80.

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

Yesterday's low for the QQQ was exactly 103.13.

Isn't it nice to have these numbers?

After stopping right on the 103.13 level, the QQQ rallied almost a point and a half.

A close today above 103.91 and the QQQ should move up to 106.25.

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.

The TLT closed just 10 cents under the 121.88 level, at 121.78 yesterday.? 119.53 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 GLD did close under 108.60 yesterday and 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 yesterday at 62.79,? just 29 cents above the key 62.50 support level.

Two closes above 63.28 and it should move up to 65.63.

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.?

Yesterday's low was 2 cents above the 112.50 support level.
114.06 is the next key level.? Two closes above that level and Apple should head up to 118.75.

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

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

Be sure to check earnings release dates.