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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On last week's webinar, I identified major pressure points for the markets and the conditions that could shift it into a bear market.
Then on Friday, only two days later, the DOW has a massive drop of over 300 points.? And the S & P 500 dropped almost 40 points.
For the week, the S & P was down 3.79% or 79.32.
Naturally, the VIX moved up.? For the week, it was up 9.58 or 64.69%.
The only bullish condition from last week was that Friday counted as a selling climax, with down to up volume of 12.19.
And this has all happened prior to the much anticipated Fed announcement this week.
At 2:00 EST on Wednesday, we will get the long awaited Fed announcement regarding interest rates.
It is anticipated that the Fed will have it's first rate hike in 9 years.
I do expect excess volatility as a result of this announcement.
Here are the key levels for the markets.
?
VIX:?
Major level - 28.13
Minor level - 26.56
Major level - 25.00
Minor level - 23.44
Minor level - 20.31 *
Major level - 18.75
I mentioned Friday that the VIX should test the 22 area and it actually broke through level and tested 25.
I would not expect the VIX to get through 28.13, however if it can, look for lower lows in the markets.
Two closes above 26.56 and the VIX should climb to 31.25.? However, watch the 28.13 level to see if it acts as resistance.
S & P 500 Cash Index:?
?
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
A close today under 2,023.48 and the objective is to 2,000.
2,039 should act as resistance.
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
A close today under 111.72 and the objective should be to 109.38.
Resistance should be at 112.50.
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
A close today above 122.66 and 125 is the objective.
Support should be at 121.88.
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 closed Friday at 103.11, just two cents under the 103.13 level.
Two closes above 103.91 and it should move up to 106.
Still in a downtrend.
XLE:
Major level - 65.63
Minor level - 64.85
Major level - 62.50
Minor level - 61.72 *
Minor level - 60.16
Major level - 59.38
Minor level - 59.60
A close today under 61.72 and the objective is 59.38.
56.25 is the major downside level that most likely will not be violated on the first attempt.
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 broke Friday and was down almost $3, however it is still above the 112.50 level.? Two closes under 110.94 and Apple should drop to 106.25.
Watch list:
Bullish Stocks: ULTA, EW, MCD, GIS, TSN, CUBE, DOW
Bearish Stocks: FFIV, BMRN, PVH, KSU, AXP, DVA, BG, WSM, CMI, BLUE, KEX, AKAM, OUTR, CF, CLH, WES
Be sure to check earnings release dates.
