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
FCX Short Nov 25th - $14 Call ?($.30)
Total Premium Collected $.54
DYN Long at $12.55
Premium Collected $.48
CERN Long Jan $50 Call - $1.65
CERN Short Jan $55 Call ? ($.40)
FEYE Long at $13.65
FEYE Short Nov 25th - $14 Call ? ($.28)
..........................................................................................
Last week, the DOW and the S & P 500 had very narrow range price action following the massive moves during the election week.? The NASD composite and the QQQ rallied the most of the markets, with a 1.61% and 1.52% jump respectively.
This week should be relatively quiet with the markets closed on Thursday for the Thanksgiving holiday here in the States.? And Friday is a short session, with the markets closing at 1:00 EST.
Now that the 2,187.50 objective has been hit, the question is where do we go from here?
Especially now that the VIX is almost back to its major long term support level of 12.50.
First off, we certainly need to monitor the VIX for reversals. But, the key technical condition is that the short term 60 minute chart for the S & P 500 is firmly in an uptrend. This tells us that any pullback should be an opportunity to go long and should most likely be short lived.
The 60 minute chart for the DOW is also in an uptrend.? Even though the NASD markets were the biggest winners last week, their short term charts have not moved into uptrends.? However, the NASD Composite is very close to crossing into bull territory.
I usually like to see all markets running in harmony with each other.
Earnings are relatively slow this week with the short trading week.
We will get the FOMC minutes on Wednesday at 2:00 EST.? With most investors expecting a rate hike next month, this should be closely followed.
Continue to monitor the levels for entry points.
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 - 17.96
Minor level - 16.41
Major level - 15.63
Minor level - 14.85
Minor level - 13.28
Major level - 12.50
The VIX closed for the week at 12.85, down 9.32%.? The close is within 35 cents of the major 12.50 level, which should still be the objective.
Minor levels are 12.89 and 12.11.? 11.72 should offer strong support.
$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
The next level is 2,203.12.? If the S & P 500 can close above that level for two days, the objective becomes 2,250.
On the downside, 2,171.88 should offer support.? And minor support should be at 2,179 and 2,175.
2,195 should be a tough level to get through the first time it is approached.
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
Objective should still be to 118.75 at this point.? 116.80 should offer support.? Short term charts are starting to show strength.? Expect support to come in around the 116.80 level if the QQQ pulls back.
TLT:?
Major level - 131.25
Minor level ? 130.46
Minor level ? 128.91
Major level ? 128.13
Major level ? 125.00 *
Minor level ? 124.22
Minor level ? 122.66
Major level ? 121.88 *
Major level ? 118.75
The TLT has now had two closes under the key 121.88 level.? At this point, strong resistance should be at 125.
The TLT could drop to as low as the 112 to 115.? The TLT is oversold short term, so a bounce could be expected.? A rally would be an opportunity to get short.
GLD: ?
Minor level ? 119.53
Major level ? 118.75
Minor level ? 117.97
Minor level -? 116.41
Major level ? 115.63 *
Minor level ? 114.85
Minor level ? 113.28
Major level ? 112.50
The GLD broke under the 115.63 support level, closing at 115.15 on Friday.? To move lower, it will need two closes under 114.85.
115.23 should be minor resistance.? 114.06 should be minor support.
XLE:
Major level - 75.00
Minor level - 74.22
Minor level - 72.66
Major level - 71.88 *
Minor level - 71.10 *<
br /> Minor level - 69.53
Major level - 68.75
Minor level - 67.96
Minor level - 66.41
Major level - 65.63
The XLE held just above the 71.10 level on Friday, closing at 71.13.? It would need two closes under 71.10 to move to 68.75.
70.70 should offer minor support and 71.88 is minor resistance.?
FXY:
Major level: 90.63
Minor level: 90.24
Minor level: 89.45
Major level: 89.06 *
Minor level: 88.67
Minor level: 87.89 *
Major level: 87.50
Minor level: 87.11
The FXY broke under the 87.50 level, closing at 87.08.? The implication now is if the FXY can close under 87.11, it should continue down to 85.94.? 86.72 should be short term support and 87.30 should be resistance.
AAPL:
Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.
Apple reversed last week and closed at 110.06.? Two closes above 110.16 and Apple should test 112.50.? 112.50 should offer resistance.
WATCH LIST:
Bullish Stocks: GS, HUM, FDX, FFIV, CVX, NVDA, DE, VMW, KLAC, KSS
Bearish Stocks:? AGN, CVS, TEVA, FSLR, CUBE, CRAY, NVO
Be sure to check earnings release dates
