September 9, 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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Yesterday's rally is starting to feel like a major bottom is forming.

And technically, there were a few set ups that are indicating that.

The first is that there were four selling climaxes during this recent sell off.

And two of them were the largest I have seen.? Namely, a reading of 40.71 on August 24th.? That was followed up with a reading of 30.71 on September 1st.

That is tremendous capitulation.

The second factor is that yesterday was the first day in about two weeks where the VIX closed under the upper bollinger band on the daily chart.

And it closed under the 25 level at 24.90.

This morning, pre open, the markets are continuing the show buying pressure.

While I do feel there is overhead resistance, I will share those levels as they are approached.

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

At this point, 26.56 should be resistance.? Two closes under 23.44 and the objective should be back to 18.75.

Monitor the movement in the VIX for continued movement in the indexes.

S & P 500 Cash Index:?

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 - 1,945.32
Major level - 1,937.50
Minor level - 1,914.12
Major level - 1,906.30

Since holding support at the 1,906 level, the S & P 500 has rallied to above the 1,968.80 level.? Yesterday, the S & P 500 closed just above it at 1,969.41.

Two closed above 1,976.62 and the objective is back to 2,000.

Downside levels should act as support.

Nasd 100 (QQQ):?

Major level - 112.50
Major level - 109.38
Major level - 106.25
Minor level - 103.91 *
Major level - 103.13
Minor level - 102.34 *
Major level - 100

A close today above 103.91 and the objective becomes 106.25.

The NASD market continues to be the strongest of the major markets.

Look for lower levels to act as support.

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

The TLT closed yesterday at 120.87.? A close today under 121.09 and the TLT should drop to 118.75.

Short term timeframes are starting to show weakness and have moved into downtrends.

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

Look for 106.25 and 105.46 areas to act as support.

The GLD stayed above the minor 107.03 yesterday, so that should also act as a support 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

A close above 65.63 would be bullish.
But, it would need two closes above 66.41 to move up to 68.75.

The XLE continues to bounce.

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.?

Apple is almost at the 112.50 objective, closing at 112.31 yesterday.

114.06 is the next level to watch.? Two closes above that level and the objective is to 118.75.

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

Bearish Stocks: LNKD, FFIV, BIDU, IBM, MMM, CMI, RL

Be sure to check earnings release dates.