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 - $1.25
Short December $20 Call - $.30
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
LUK Long December $18 Call - $.35
ETE Long $14.05
Short December $15 call - $.30
VNR Long $2.97
Short December $3 Call - $.30
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The S & P 500 closed up 4.61, after not being able to hold the 2,062.50 level.
Both the VIX and the S & P 500 had inside days yesterday, which usually means to expect a range expansion.
And that certainly seems to be the case, with the S & P down close to 16 points pre open.
At this point, I would expect a move down to 2,031 to 2,039 on the S & P 500.
The VIX should try and test the 22 area.? When the VIX reverses to the downside, the markets should head up.
Here are the key levels for the markets.
?
VIX:?
Minor level - 26.56
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
Two closes above 20.31 and the objective should be 25.
Support should be 18.75.
S & P 500 Cash Index:?
Major level - 2,125.00
Minor level - 2,101.62
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
Resistance should be at 2,062.50.? Objective should be down to 2,031.30.
Nasd 100 (QQQ):?
Minor level - 116.41 *
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
109.38 should be strong support for the QQQ.
Two closes under 111.72 will confirm the move down.
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 holding around the 121.88 level.
For the TLT to move up, it will need two closes above 122.66.? Same scenario as yesterday.
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 is still stuck in the 100 - 103 range.
It will need two closes under 102.34 to move back and retest 100.
XLE:
Minor level - 67.97
Minor level - 66.41
Major level - 65.63
Minor level - 64.85
Major level - 62.50
Minor level - 61.72 *
Major level - 59.38
The XLE is trying to hold the 62.50 level.
It would still need two closes under 61.72 to
move down and two closes above 64.85 to
head up.
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 continues to trade in a tight range.? The longer it bases, the bigger the move out of this consolidation.
Watch list:
Bullish Stocks: GOOGL, NOC, ULTA, RTN VRSN, DY, DPS,? ALK, TEVA, GIS, TSN, T, EDU
Bearish Stocks: PII, CMG, COO, SRCL, PVH, UNP, AXP, AKAM, CAR, BIG, HAIN, FOSL
Be sure to check earnings release dates.
