September 25, 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 $29 Call
Net Debit - $0.70

X Long at $14
Short September 25th $14 Call @ $.54
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There is only one open position that expires today and that is the short $14 call on X.?? You will book the profit on the call you sold and most likely keep the stock.

Yesterday, the S & P 500 dropped to a low of 1,908.92,? just 2.62 above the 1,906.30 support level before it reversed and headed up.

The daily price action formed a hammer and this morning it appears that the market should follow through to the upside.

The question is could you have anticipated this?

The VIX can help with that.? Yesterday, I mentioned how 25 or 26.56 should act as resistance on the VIX.

The VIX ran up to a high of 25.30 yesterday and began to pull back.? That happened at 11:00 EST.? And when the VIX started to move down, the S & P bottomed and headed up.

I will review where the next levels should be below.

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 again under 23.44, so the downside objective should be to 18.75.

Look for higher levels to act as resistance.

S & P 500 Cash Index:?

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
Minor level - 1,914.12
Major level - 1,906.30
Minor level - 1,898.48

That S & P rallied back yesterday to close just under the 1,937.50 level,? at 1,932.24.

Look for support at 1,929.68.
Two closes above 1,945.32 and the objective now becomes 1,968.80.

Nasd 100 (QQQ):?

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
Minor level - 102.35
Major level - 100.00

Yesterday's low was 102.27,? just 8 cents under the support level of 102.34, I mentioned yesterday.

Then the QQQ rallied back to back back above the 103.13 level.? It closed at 103.80.

Two closes above 103.91 and the objective becomes 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 still needs two closes above 122.66 to confirm a move up to 125.

It closed yesterday at 122.60, just 6 cents under the level.

The 121.88 level 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 finally popped above the 109.38 level and closed at 110.49.

If it can close above 110.16 today, it should move up to 112.50.

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
Major level - 59.38

The XLE continues to bounce around the 62.50 major support level.

It would need a bit more conviction buying and a close above 62.50 to perhaps begin thinking that a bottom is in.

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.?

Apple back above the 114.06 level and continues to show strength.

Apple has now bounced twice in the past three days off the 112.50 level.? Pretty strong area of support.

Watch list:
Bullish Stocks:? CHTR, RCL, SJM, ABMD, ALK, DY, ALKS, SBUX, DF

Bearish Stocks: ALXN, JAZZ, PVH, BIDU, FFIV, ZBH, MON, CAT, CMI, MMM, MWE, DD, APA,

Be sure to check earnings release dates.