While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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
Total Premium Collected $1.95
ASNA Long at $14.20
Total Premium Collected $0.75
DUST Long $4.50
Total Premium Collected $0.70
RRC Long at $11.85
Total Premium Collected $0.70
RRC Long at $9.20
RIG Long at $8.81
Premium Collected - $1.45
FEYE Long at $17.18
Total Premium Collected $0.80
DBX Long at $17.18
DBX Short Jan 31st-$17 call @ $0.70
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You should have been assigned on the short $10 call on TEVA Friday as the stock settled at $10.12 or 12 cents in the money.
The return ended up at 5% for an 11-day holding period.
Christmas is this Wednesday and I thought I would share the Holiday trading schedule.
Tomorrow, the NASD and NYSE close early at 1:00 EST. The bond market closes at 2:00 EST.
And all markets are closed Wednesday for Christmas.
The markets are open on New Year's Eve but are closed New Year's Day.
I do want to wish you a Happy Holiday!
Because of the shortened Holiday week, I do not plan to publish a daily update on Thursday and Friday of this week. I do expect slow trading this week with the year end coming up.
The S & P 500 continued higher on Friday. The day closed out at 3,221.22 or 15.85 points higher.
This put the market within 60 points of the major 3,281 level.
The support area from Friday's daily price bar is in the 3,220 too 3,222 area.
The weekly price bar closed out 52.42 points higher. The range for the week was only 42 points as compared with the weekly average true range of 65.34 points.
The contraction is bearish, but the week closed out 89.5% of the range, so the odds favor a violation of the high before the low. The high was 3,225.65 and the low was 3,183.63.
And the support area should be in the 3,202 to 3,205 area.
With the short week, there are not any earnings announcements that can affect the market. And marketwide news is slow this week as well.
Pre open, the S & P is trading about 7 points higher.
Here are the Key Levels for the Markets:
$VIX:
Major level: 21.88
Minor level: 21.10
Minor level: 19.53
Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.85
Minor level: 13.28
Major level: 12.50 <
Minor level: 11.72 **
Minor level: 10.16
Major level: 9.38
The VIX closed one cent above the 12.50 level. The VIX, at this point, has not made a serious push, and the market will not pull back until it does.
This tells us that the 13.28 level should still be resistance.
11.72 should still be support. A break under it and the VIX should head down.
SPX:
Major level: 3,281.20
Minor level: 3,242.15
Minor level: 3,164.08 ***
Major level: 3,125.00 < Hit
Minor level: 3,085.95
Minor level: 3,007.85
Major level: 2,968.80
Minor level: 2,929.73
Minor level: 2,851.58
Major level: 2,812.50
Minor level: 2,773.45
The S & P closed at 3,221.22. The short term target should be to the minor 3,242.15 level. And the S & P is about 20 points under it.
3,203.10 should be minor support, so watch this level today. And the 3,220 area should be support as well.
Technical support is around 3,198.
QQQ:
Major level: 212.50 <<
Minor level: 211.74
Minor level: 210.17 **
Major level: 209.39
Minor level: 208.61
Minor level: 207.04
Major level: 206.25
Minor level: 205.48
Minor level: 203.91
Major level: 203.13
Minor level: 202.35
Minor level: 200.78
Major level: 200.00
The QQQ closed at 211.71. The objective for the QQQ should still be to the 212.50 level.
At this point, support should be at 210.17.
The 209 area should still offer technical support.
IWM:
Major level: 168.75 <
Minor level: 167.19
Minor level: 164.06 **
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25
Minor level: 154.69
Minor level: 151.56
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
The IWM closed at 165.97. The target for the IWM should be up to 168.75 level.
The minor 164.06 level should still offer support.
162.50 should offer strong support. 164.50 should be technical support.
Short term charts remain bullish, so momentum is still bullish. Same as yesterday.
TLT:
Major level: 143.75
Minor level: 142.97
Minor level: 141.41
Major level: 140.63
Minor level: 139.85
Minor level: 138.28 ***
Major level: 137.50 HIT
Minor level: 135.84
Minor level: 132.81
Major level: 131.25
The TLT closed at 136.65. The TLT will still need two closes above 138.28 to move higher. Two closes under 135.84 and the TLT should continue down to 131.25.
137.50 should be resistance. And technical resistance is at that level as well.
GLD:
Major level: 143.75
Minor level: 142.97
Minor level: 141.41
Major level: 140.63
Minor level: 139.85 **
Minor level: 138.28
Major level: 137.50
Minor level: 136.72
Minor level: 135.16
Major level: 134.38
The GLD closed at 139.52. A break under 138.28 and the GLD should continue lower. At this point, the GLD is holding 138.28.
Watch the 140.63 level on the upside. A break above it and the GLD should head higher. But, it should be resistance until it is violated.
137.50 should be strong support. So if the GLD does break under it, I would expect it to head lower.
The key level is 134.38 on the downside. If the GLD has two closes under this level, it could drop to 125.
Technical resistance is around 140. And the 139.85 level should be resistance.
XLE:
Minor level: 63.28
Major level: 62.50 <<
Minor level: 61.72
Minor level: 60.16 **
Major level: 59.38
Minor level: 58.60
Minor level: 57.03
Major level: 56.25
Minor level: 55.86
Minor level: 55.08
Major level: 54.69
The XLE closed at 61.36. The objective for the XLE should be for a move up to 62.50.
The XLE continues to hold just above the midband, which is now 61.04. This should be support.
The XLE has still not crossed into an uptrend on the daily chart, but it is inching closer. If the XLE can cross into an uptrend and start to move above the midband, it could have a strong move higher.
AAPL:
Major level: 281.25 HIT
Minor level: 277.35
Minor level: 269.54
Major level: 265.63
Minor level: 261.72
Minor level: 253.91
Major level: 250.00
Minor level: 246.88
Minor level: 240.63
Major level: 237.50
Apple closed at 279.44. At this point, Apple will need two closes under 277.35 to move lower.
And minor support should now be at 269.54. And technical support is around 277.
Apple will need to clear 281 to continue this strong bull move.
Needless to say that short term trends remain bullish.
WATCH LIST:
Bullish Stocks: TSLA, SHOP. HUM, ADBE, ASML, AAPL, BDX, NVDA, GS, BABA, FB, ADSK, DECK, URI, CB
Bearish Stocks: BA, VMW, WIX, CHKP, UTHR, CVLT, CAKE, GOOS, ALEX
Be sure to check earnings release dates.
