September 8, 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 - $1.70

VNR Long at $8.91
Short September $9 call @ $.50

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The volatility in the markets continue with a 30 point drop in the markets Friday after the Non Farm Payroll.

This morning, pre open, the markets are up over 30 points.

This week is a short week with the markets closed yesterday for Labor Day.?

Friday also qualified as a selling climax.? The down to up volume was 10.05 to 1.? That was the fourth selling climax during this sell off.

Now onto the markets.

Here are the key levels for the markets.

Stocks...
?
VIX:?

Major level - 37.50
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

Look for support at 25.? On a break under 25, 23.44 should offer some support.

As the VIX drops, look for the markets to rally.

S & P 500 Cash Index:?

Major level - 2,000.00
Minor level - 1,976.62
Major level - 1,968.80
Minor level - 1,945.32
Major level - 1,937.50
Minor level - 1,914.12 *
Major level - 1,906.30
Minor level - 1,882.83
Major level - 1,875.00

1,906.30 appears to have held as support.? Two closes above 1,914.12 and the objective is to 1,937.50.

Nasd 100 (QQQ):?

Major level - 109.38
Major level - 106.25
Minor level - 103.91 *
Major level - 103.13
Minor level - 102.34 *
Major level - 100
Major level - 96.88
Major level - 93.75
Major level - 90.63
Major level - 87.50

A close above 103.13 would be quite bullish.

The 100 level held as support last week.

Minor resistance at 103.91.? And if the QQQ can close above 103.91 for two days, it should move up to 106.25.

TLT:?

Major level - 131.25
Major level - 128.13
Minor level - 125.78
Major level - 125
Minor level - 124.22
Minor level - 122.66 *
Major level - 121.88
Minor level - 121.09 *
Major level - 118.75

Friday, the TLT closed above the 121.88 level, at 122.68.

121.88 is a key level.? For the TLT to move higher, it would have to close above 121.88 today.

Short term timeframes are starting to show weakness.

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 appears to be heading back to 106.26 for the retest I mentioned Friday.

Minor support should be at 105.46.

XLE:

Major level - 68.75
Major level - 65.63
Minor level - 64.84
Minor level - 63.28 *
Major level - 62.50
Minor level - 61.72
Major level - 59.38
Minor level - 58.60
Major level - 56.25

62.50 should be support at this point.? Look for the XLE to continue to bounce around.

Apple:

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

107.81 should be a minor support level. Objective should be back to 112.50.

Watch list:
Bullish Stocks:? DY, BGS, GMCR, GOOGL, BWLD, GD, COST, UHS, BDX, MNST, VRTX

Bearish Stocks: FDX, AMGN, BIDU, IBM, MMM, CMI, RL

Be sure to check earnings release dates.