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.
GOGO? Long at $19.93
Total Premium Collected? $1.95
ASNA Long at $14.20
Total Premium Collected $.75
DUST Long $4.50
Total Premium Collected? $.70
FCX Long $12.45
Total Premium Collected? $.24
DYN Long at $12.55
Premium Collected $.48
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Today is finally the day we find out who will become the leader of the free world for the next four years.
Will it be the bombastic businessman Donald Trump?? Or will it be the career politician, Hillary Clinton?
The general consensus is that if Trump wins, the markets will sell off. ?This is based on the view that he represents uncertainty.? And the markets hate uncertainty more than anything.
A Clinton victory is viewed as more of the same.? Therefore, the uncertainty factor is less.
Regardless of who wins, we should know this evening.? Unless Mr. Trump chooses to contest and challenge the results. We shall see.
And speaking of uncertainty, once the FBI mentioned that they were not going to challenge the new emails found on the servers of an aide of Ms. Clinton, the markets perceived this as bullish and rallied quite strongly yesterday.
The rally was similar to the reaction after the Brexit vote.
The S & P 500 closed to the upside 46.34 points.? This close reversed six prior bearish closes, which is extremely bullish.
The question is could we anticipate this?
As for the odds for a reversal, the answer is yes.? In fact, I have been mentioning how oversold the market had been.
In fact, Friday was the 9th consecutive lower close for the S & P 500.
Usually, you begin to look for a reversal or a bounce after eight consecutive lower closes. And typically, the market will not continue in the same direction for 10 consecutive closes.
The thing we cannot predict is the extent or the strength of the reversal.? This is something I have mentioned many times. In other words, we can determine when a market is due to reverse.? And the simple method I shared above will help measure when that reversal will happen.
What becomes impossible to predict is the strength of that reversal.
PCLN reported and is up about $65 before the open.? And this is on top of the $56 move the stock made yesterday.
Continue to monitor the levels for entry points.
Here are the Key Levels for the Markets:
$VIX:
Major level - 25.00
Minor level ? 24.22
Minor level ? 22.66 *
Major level ? 21.88 *
Minor level ? 21.10
Minor level ? 19.53
Major level - 18.75
Minor level - 17.96
Minor level - 16.41
Major level - 15.63
Minor level - 14.85
Minor level - 13.28
Major level - 12.50
The VIX dropped 16.88% yesterday and closed at 18.71.? At this point, I would expect 19.53 to act as resistance.
Short term support should be at 17.19.
$SPX:
Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12
Major level - 2,187.50
Minor level - 2,171.88
Minor level - 2,140.62
Major level - 2,125.00 *
Minor level - 2,109.38 *
Minor level - 2,078.12
Major level - 2,062.50
With the S & P 500 closing above 2,125, it should now offer support.? If that does not hold, look for 2,117.20 to offer support.
On the upside, watch the 2,140 level.
QQQ:?
Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75
Minor level - 117.97
Minor level - 116.41
Major level - 115.63
Minor level - 114.84 *
Minor level - 113.28
Major level - 112.50
The QQQ closed back above 115.63, at 116.35 yesterday.? 115.63 should now offer support.
117.97 should offer minor resistance.
TLT:?
Major level - 137.50
Minor level - 136.72
Minor level - 135.16
Major level - 134.38
Minor level - 133.60
Minor level - 132.03 *
Major level - 131.25 *
Minor level ? 130.46 *
Minor level ? 128.91
Major level ? 128.13
The TLT dropped back under the 131.25 support level, but held just above 130.46.? 129.69 is a level that the TLT should NOT drop under. If it does, expect further movement to the downside.
GLD:
Major level ? 125.00 *
Minor level - 124.22
Minor level ? 122.66 *
Major level ? 121.88
Minor level ? 121.10
Minor level ? 119.53
Major level ? 118.75
Minor level ? 117.97
Since failing at the 125 level, the GLD dropped down to close at 122.15.? 122.66 should now be resistance.? Objective should be to 121.88.
XLE:
Major level - 75.00
Minor level - 74.22
Minor level - 72.66
Major level - 71.88
Minor level - 71.10
Minor level - 69.53 *
Major l
evel - 68.75 *
Minor level - 67.96 *
Minor level - 66.41
Major level - 65.63
The XLE also bounce and closed at 69.23. It is back above 68.75, which should now be support.
68.36 should be minor support. ?And 69.53 should offer resistance.
FXY:
Major level: 96.88
Minor level: 96.49
Minor level: 95.70
Major level: 95.31
Minor level: 94.92
Minor level: 94.14
Major level: 93.75 *
Minor level: 93.36
Minor level: 92.58 *
Major level: 92.19
Minor level: 91.80
Minor level: 91.02
Major level: 90.63
The FXY sold off the 93.75 level and closed at 92.37.? Look for 92.19 to offer support. If it cannot hold 92.19, look for lower lows.
AAPL:
Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.
Apple closed at 110.41.? Minor resistance is at 112.50.? If Apple can clear 112.50, look for a move up to 117.
WATCH LIST:
Bullish Stocks: FDX, ACN, CXV, DRI, AGO, STLD, DRI, BHI ?
Bearish Stocks:? REGN, TSLA, AGN, PANW, COST, ANTM, CLX, JAZZ, ATHN
Be sure to check earnings release dates
