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
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Have I mentioned that 2,093.80 is a key level for the S & P 500??
The fact is that yesterday it moved up and took out that level made you biased to the upside.
And when a level is broken, I expect that the prior levels should act as support, and that is what happened.
Once 2,093.80 was violated, 2,085.98 should act as support.
The VIX can help to determine direction. The level I mentioned yesterday was 15.63 and once it was violated, it should act as resistance.
In fact, after it was violated, it was retested and failed at 15.62, just 1 penny under the level.
On another note, ASNA reported last night.
The options were really overpriced, with both the calls and the puts showing an implied volatility of close to 80%.
The market makers projected move was $1.55, or 13%.
I would normally think about protecting a position, but because the options were so overpriced it did not make sense.
With this pricing you would need a radical move to make money.
Here are the key levels for the markets.
?
VIX:?
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
The VIX closed down at 14.67 yesterday.
Look for 15.63 to act as resistance.
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
The S & P closed above the 2,093.80 level.
This is bullish and a break above the recent consolidation.
Look for lower levels to act as support.
A close today above 2,101.62 and it paves the move to 2,125.
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
The QQQ is just under the 115.63 objective.
Lower levels should be support.
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 blew through the 121.88 objective and closed at 122.83 yesterday.
A close today above 122.66 and the TLT should move up to 125.
Lower levels should be support.
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 struggling to get through the minor resistance at 102.34.? If it cannot break that level, look for it to move back down.
XLE:
Minor level - 75.78
Major level - 75.00
Minor level - 72.66
Major level - 71.88
Minor level - 69.53 *
Major level - 68.75
Minor level - 67.97 *
Minor level - 66.41
Major level - 65.63
The XLE is close to the 68.75 yesterday.
?
It will need two closes above 69.53 to move up to 71.88.
67.97 should act as support.
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 did bounce off the down gap I mentioned last week.
It is trading just under the 253 day average on the daily chart, which is 118.94.
118.75 was resistance yesterday.? Expect a move to 112.50.
Watch list:
Bullish Stocks: NTES, EW, MNST, STZ, HD, TSO, NFLX, DY, SWK, DPS, QIHU, GIS, MPC, XLNX
Bearish Stocks: CBRL, CELG, CRI, AXP, DECK, CAR, RGLD, SHO, MOS, RRC
Be sure to check earnings release dates.
