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
Total Premium collected - $1.55
NCR Long Jan 16 $27 Call
Net Debit - $.80
X Long at $14
Total Premium collected - $.89
ASNA Long at $14.20
Total Premium collected - $.75
ETE Long $14.05
Total Premium collected - $.30
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The last trading week of 2015 begins with the S & P 500 selling off 4.49.
It sold off to just under the minor support level I mentioned yesterday, which was 2,046.90.
Then the market rallied to close just above the bearish downside confirming level, which was 2,054.68. The S & P 500 closed at 2,056.50.
For the market to remain bullish into the year end, I would have expected a close above the 2,055 level.
And pre open, it appears that the markets should extend their gains.
As the S & P 500 found support, the VIX failed at 18.13, about 55 cents under the major 18.75 resistance level I had discussed.
I would expect the VIX to continue down today and resistance to be at the higher levels, most notable at 17.19.
This is a very slow week for any news or earnings annoucnements. Earnings do not kick in until January 11th when Alcoa reports.
Here are the key levels for the markets.
VIX:
Major level - 25.00
Minor level - 23.44
Minor level - 20.31
Major level - 18.75
Minor level - 17.19
Minor level - 14.06
Major level - 12.50
The VIX closed back under the 17.19 level, at 16.91 yesterday.
A close today under 17.19 and the objective becomes 12.50. 17.19 should be resistance.
S & P 500 Cash Index:
Major level - 2,093.80
Minor level - 2,085.98
Minor level - 2,070.33
Major level - 2,062.50
Minor level - 2,054.68
Minor level - 2,039.10
Major level - 2,031.30
Minor level - 2,023.48
Minor level - 2,007.82
Major level - 2,000.00
Minor level - 1,992.18
The minor support level of 2,046.90 held yesterday. The S & P will need two closes above 2,070.33 to move up to 2,093.
Minor resistance should be at 2,078.10.
Nasd 100 (QQQ):
Major level - 115.63
Minor level - 114.85
Minor level - 113.28 *
Major level - 112.50
Minor level - 111.72
Minor level - 110.16
Major level - 109.38
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
The QQQ fell 20 cents under the 111.72 minor support level yesterday and closed just under the major 112.50 level.
Two closes above 113.28 and the objective becomes 115.63.
Minor resistance should be at 114.06.
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 - 117.97
Minor level - 116.40
Major level - 115.62
The TLT is back above the 121.88 level, closing at 122.19.
It will now need two closes above 122.66 to move back up.
Support should be at 119.53.
GLD:
Major level - 106.25
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
Minor level - 102.34 *
Minor level - 100.78
Major level - 100.00
Major level - 96.88
The GLD continues to trade between 100 and 103. The 60 minute chart has moved into an uptrend.
101.56 should be minor support. I would like to see two closes above 103.13 and then would suggest some gold miners.
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
The XLE will need two closes above 63.28 to move up. 61.72 should be support.
Minor support should be at 60.16 and at the major support level of 59.38.
Apple:
Major levels for Apple are 125, 118.75, 112.50, 106.25, 100, and 93.75. 106 should be a major support level for Apple.
Apple tested the 106.25 level yesterday. Two closes above 107.81 and the objective is back to 112.50.
Watch list:
Bullish Stocks: PNRA, NOC, CI, KMB, ACE, ADBE, DPS, PM, QIHU, BRCM, ALTR, CCL, TSN, DAL, RAI
Bearish Stocks: CMG, COO, RH, PVH, ODFL, JWN, WSM, DECK, OUTR, WNR, HIBB, BKE, NTAP, SWFT
Be sure to check earnings release dates.
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