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 $1.95
ASNA Long at $14.20
Total Premium Collected $0.75
DUST Long $4.50
Total Premium Collected $0.70
SNAP Long at $15.20
Premium Collected - $3.24
Short Dec 22nd- $16 Call @ $0.45
AMC Long at $15.27
Premium Collected - $1.98
UNIT Long at $17
Short January $17.50 Call @ $0.35
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Before I begin today, I want to mention a little housekeeping.
New Year's Day next Monday, all markets will be closed. However, Friday will be a full session.
I don't advocate day trading when trading is light and that is what I expect this week.
Finally, UNIT is trading above the $17.50 strike price. It closed yesterday at $18.12 or about 62 cents above the strike.
The record date to receive the January dividend is December 29th. When I made the suggestion, the idea was that if UNIT was trading above $17.50 there was a risk of early assignment.
In the event the calls are assigned, you will not collect the dividend, but you have already collected the call premium, which means you will book a profit on the sale and book the profit from selling the call options.
And you have your money back from the sale.
If the calls do end up being assigned, please email and let me know, assuming you put on the trade.
Because I did not publish an update yesterday, I want to mention that the short $16 call on SNAP expired on Friday. If SNAP does bounce today, I will add another short call.
Last week, the S & P 500 closed slightly higher at 2,683.34. It was up 7.53 points for the week.
The support level from last week's weekly price bar is in the 2,684.50 to 2,685.50 area.
And yesterday, the S & P 500 closed slightly to the downside at 2,680.50. For the day, the market was down 2.84 points.
The support level from yesterday's price bar is 2,680. So, the key levels to watch today are the 2,680 to 2,685 area.
Pre open, the S & P 500 is trading about 2 points to the upside.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
Major level: 14.06
Minor level: 13.67
Minor level: 12.89
Major level: 12.50
Minor level: 12.11
Minor level: 11.33
Major level: 10.94
Minor level: 10.55
Minor level: 10.16 **
Major level: 9.38 <
Minor level: 8.99 **
Minor level: 8.20
Major level: 7.81
The VIX closed at 10.27, 11 cents above the 10.16 level. This now implies that if the VIX closes above 10.16 today, the objective should be to 10.94.
10.94 should be resistance. And support should be at 9.18.
Watch to see if the VIX can hold 10.16 today.
$SPX:
Major level: 2,734.40
Minor level: 2,724.23
Minor level: 2,705.07
Major level: 2,695.30 <
Minor level: 2,685.55 **
Minor level: 2,666.05
Major level: 2,656.30 <
Minor level: 2,646.53
Minor level: 2,626.98
Major level: 2,617.20
Minor level: 2,607.43
2,673.30 should be support. And if the S & P can reclaim 2,685.50, I would expect a move higher.
Watch to see if the market can hold 2,684.
And short term resistance could come in at 2,711.20. Short term momentum remains bullish.
QQQ:
Major level: 162.50
Minor level: 160.94
Minor level: 157.81 <
Major level: 156.25 **
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
Minor level: 152.34
Minor level: 150.78
Major level: 150.00
The QQQ closed at 156.52. The QQQ is still holding above the 156.25 support level. This level should be support.
If 156.52 is taken out, I would not expect the QQQ to drop further than 155.47.
IWM:
Major level: 156.25
Minor level: 155.47
Minor level: 153.91 **
Major level: 153.13 <
Minor level: 152.35
Minor level: 150.78
Major level: 150.00
Minor level: 149.22
Minor level: 147.66
Major level: 146.88
The IWM closed at 153.28. It is holding above the 153.13 level.
Watch to see if the IWM can hold 153.13. If it can't a drop to 151.56 could happen.
156.25 is resistance. If the IWM can clear that level, it should head higher.
TLT:
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.35
Minor level: 125.78
Major level: 125.00 <
Minor level: 124.61 **
Minor level: 123.83
Major level: 123.44
Minor level: 123.05
The TLT closed at 125.14. Two closes above the minor 125.78 level and the TLT should test 128.13.
Minor support is at 124.22.
GLD:
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
Major level: 121.88
Minor level: 121.10
Minor level: 119.53 **
Major level: 118.75 <
Minor level: 117.96
Minor level: 116.41
Major level: 115.63
The GLD closed at 121.77. The 121.88 is being tested. Watch to see if this level is violated.
If 121.88 is violated, I would expect a retest of 125, which should be resistance.
XLE:
Major level: 73.44
Minor level: 72.66
Minor level: 71.09
Major level: 70.31
Minor level: 69.92
Minor level: 69.14 **
Major level: 68.75 <
Minor level: 68.36
Minor level: 67.58
Major level: 67.19
The XLE closed at 72.60. The XLE is within $1 of the 73.44 objective.
71.88 should be now be support.
The daily chart is inching closer to an uptrend. If the daily moves into an uptrend, I would expect higher highs to follow.
FXY:
Major level: 86.72
Minor level: 86.53
Minor level: 86.14
Major level: 85.94
Minor level: 85.75
Minor level: 85.36
Major level: 85.16 <
Minor level: 84.96 **
Minor level: 84.55
Major level: 84.38 <<
The FXY closed at 84.80. 84.38 is a major support level for the FXY.
A close today above 84.55 and the FXY should test 85.16. The FXY may consolidate for a while before it starts to head up.
AAPL:
Major levels for Apple are 175, 171.88, 168.75, 165.63, 162.50, and 159.38.
Apple gapped down and closed at 170.57. 168.75 should be support.
Watch yesterday's low, which was 169.68. If it is violated, Apple should head lower.
WATCH LIST:
Bullish Stocks: NTES, SPY, FDX, PH, FLT, HD, CLX, PLCE, COL, UNP, CAT, DE
Bearish Stocks: JAZZ, RNR, EIX, EPR, AXS, AIV, DISH
Be sure to check earnings release dates.
