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 $32 Call
Net Debit - $1.70
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I mentioned Friday the possibility of the markets forming doji bars on the weekly timeframes.
And that is what happened.
The markets sold off about 50 points into the reversal on Wednesday and proceeded to rally to actually close higher for the week.
Once again, the VIX helped to pinpoint the reversal.
On Wednesday, the VIX traded above 15.63, hitting a high of 16.28.? The key would be if the VIX could hold the 15.63 line, which it couldn't.
Now the VIX is back to testing the major 12.50 level ... again!
Watch how the VIX trades around this level to help time the markets.
This Wednesday is the release of the Fed Meeting Minutes at 2:00.? With the specter of a rate hike coming, this event could produce a volatile market reaction.
Here are the key levels for the markets.
Stocks...
?
VIX: ?
Major level - 17.19
Major level - 15.63
Minor level - 14.45
Major level - 14.06
Minor level - 13.67
Minor level - 12.89
Major level - 12.50
Minor level - 12.11
Major level - 10.94
The expected retest of 12.50 is here.? Watch the 12.11 level for possible support.
S & P 500 Cash Index: ?
Minor level - 2,132.82
Major level - 2,125.00
Major level - 2,109.40
Minor level - 2,105.50
Minor level - 2,097.70
Major level - 2,093.80
Minor level - 2,089.90
Minor level - 2,082.00
Major level - 2,078.10
The active objective is still 2,093.80.? And with the? S & P closing Friday at 2,091.54, it is only a few points away.
Two closes above 2,097.70 and the objective becomes 2,109.40.
Nasd 100 (QQQ): ?
Major level - 115.63
Minor level - 113.28
Major level - 112.50
Minor level - 112.11
Minor level - 111.33
Major level - 110.94
Minor level - 110.16
Minor level - 109.77
Major level - 109.38
The objective is to 110.94.? Minor resistance should be at 111.33.
Lower levels should act as support.
TLT: ?
Minor level - 125.78
Major level - 125
Minor level - 124.22
Minor level - 122.66 ?
Major level - 121.88
Minor level - 119.53 ?
Major level - 118.75
Major level - 115.63
Objective is back to 125.
The lower levels should act as support.
Short term timeframes remain in uptrends.
GLD:
Major level - 109.38
Minor level - 107.03
Major level - 106.25
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
Minor level - 102.34
Major level - 100
Two closes above 107.03 and the objective becomes 109.38.
XLE:
Minor level - 74.21
Minor level - 72.66
Major level - 71.88
Minor level - 71.09
Minor level - 69.53
Major level - 68.75
Minor level - 67.96
Major level - 65.63
Major level - 62.50
68.75 level should be support.? The XLE would need two closes above 69.53 to move up to 71.88.
Apple:
The objective is still up to 118.75.
Major levels for Apple are 125, 118.75, 112.50 and 106.25.
Watch list:
Bullish Stocks:? LMT,? BWLD, MLM, GD, STZ, HD, STZ, NFLX, MA, ADBE, CLX, RAI, ALK
Bearish Stocks: FDX, BIDU, IBM, MMM, RL, DDS, ASML, Z, DECK, XLE, FOSL,QCOM, GMCR
Be sure to check earnings release dates.
