September 28, 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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The short $14 call on X expired on Friday.? I will look to adjust the position this week.
Selling continues pre open this morning, with all markets looking to to open on the downside.
The expected retest of the lower bollinger bands on the daily is happening.
The key now will be if they will hold as support.
For the S & P 500, that level is 1,888.40.? For the DOW,
the level is 16,059.32.
The NASD composite and the QQQ are still well above that level.
For the QQQ, the level is 93.08.
The lower extreme bollinger bands all coincide with major support and resistance levels.
At this point, I would expect a spike back up in the VIX and a retest of the upper bands on the daily.? This pattern is just the opposite of the indexes.
The upper band on the VIX is 27.50.? The key is if the VIX stalls at this level and heads down.? If it does, the market should reverse.? If it breaks through, I would expect another round of selling.
I wanted you to be aware of the scenario I am looking at.
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 above 23.44 Friday.? Look for that level to act as support.? 26.56 could act as resistance.
And of course, the major 27.50 level.
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
1,875 is a major level of support.? And it is within 13 points of the lower extreme bollinger band on the daily chart.
Two cloes under 1,929.68 and the objective is 1,906.
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
Major level - 96.88
The QQQ closed a point under the 103.91 level Friday.
A close today below 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 dropped back under the 121.88 level Friday.
It would need two closes under 121.09 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
The GLD closed Friday under 110.16, so it still needs two daily closes above that price to 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 ... again!
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 has moved into a downtrend on the daily chart and I would expect 117.50 level to act as resistance.?
Watch list:
Bullish Stocks:? ULTA, NKE, FL, AHS, FLO, NVDA, P
Bearish Stocks: ALXN, JAZZ, PVH, BIDU, FFIV, ZBH, MON, CAT, CMI, MMM, MWE, DD, APA, FDX
Be sure to check earnings release dates.
