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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Yesterday, the S & P 500 closed just above the 1,937.50 support level, at 1,938.76.
It was also an inside day, which typically foretells of increased volatility.
Pre open, the S & P 500 is down about 15 points, so it certainly appears that today will have that volatility.
As I mentioned yesterday, the natural price objective for the S & P 500 would be a retest of the bottom band on the daily chart, which is around 1,890.
Based on yesterday's close, the market is about 50 points from that level.
I want to mention briefly that on John's webinar yesterday, I brought up the pipelines and how their yields are becoming more attractive the further they drop.? John suggested I write about some of them in the daily update, which I will do.
The first one I want to mention is one we traded, Vanguard Natural Resources, LLC (VNR).
VNR is back to trading under $9.? Yesterday, they announced the distribution for October at $.1175 per unit. Annualized, it totals $1.41 per unit.
Based on yesterday's close of $8.73, it works out to an annual return of 16.1%.
The lower the stock drops, the more attractive the return becomes.
Of course, there is no guarantee that they will maintain that level of distribution.
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 *
Minor level - 20.31
Major level - 18.75
Minor levle - 17.18
The VIX closed yesterday at 22.13, marking the second day it closed under 23.44.
I would still expect higher levels to act as resistance on the VIX.? Most likely 25 or 26.56, with a move down to 18.75 eventually.
S & P 500 Cash Index:?
Minor level - 2,023.40
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 - 1,960.98 *
Minor level - 1,945.32 *
Major level - 1,937.50
Minor level - 1,929.68
Major level - 1,906.30
Minor level - 1,929 .68
Minor level - 1,914.12
Major level - 1,906.30
That S & P closed yesterday just above the 1,937.50 support level.
The market should open under that level this morning, so I would expect it to act as resistance.
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
The QQQ closed above 103.13 yesterday.
Minor support should be at 102.35.
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 would need two closes above 122.66 to confirm a move up to 125.
The TLT churned yesterday, just under the 121.88 level.
It closed down a penny from the day before.
Still inclined to buy support levels.
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 continues to bounce. It is trying to take out the 109.38 level.? If it does, I would expect 110.16 to act as resistance on the first break of 109.38.
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 key 62.50 support level.
It closed yesterday under that level at 61.98.
Two closes under 61.72 and the objective is down to 59.38.
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 closed above 114.06 yesterday at 114.32.? A close above that level today and the objective is to 118.75.
If it fails to close above 114.06, it will need to reset.
Watch list:
Bullish Stocks:? CHTR, RCL, SJM, ABMD, ALK, DY, ALKS
Bearish Stocks: ALXN, JAZZ, PVH, BIDU, FFIV, ZBH, MON, CAT, CMI, MMM, MWE, DD, APA,
Be sure to check earnings release dates.
