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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Last week, the S & P 500 opened at 2,090.95, then on Wednesday and Thursday there was a two day decline of almost 62 points.
Then on Friday, there was the massive 42 point pop in the S & P 500 based on the Non Farm Payroll.
The end result was that the S & P 500 closed the week at 2,091.69, or about one point higher than it opened.
Quite the volatility.
The VIX bottomed at 14.63 last Tuesday, only to run up to 19.35.? This was 60 cents above the 18.75 resistance level.
After that, it fell back to 14.69.
After all that movement last week, the S & P essentially closed the week where it began.
And after the sell off, the S & P rallied right back to the major 2,093.80 level. Friday's high actually took it out by 4 cents.
For the upmove to continue, the S & P will need to close above the 2,093.80 level.? This has been a strong level of resistance for the S & P, even going back to the beginning of the year.
This is similar to the VIX finding support at the 12.50 level.
So, a close above 2,093.80 should help to fuel the markets higher.
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
A close today under 17.19 and the VIX should test 12.50.
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
Major level - 2,031.30
Support should be at 2,086 and 2,070.
Two closes above 2,101.62 and the objective becomes 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 found support at the 112.50 level and almost came back to the 115.63 level.
Support should be at 114.85 and 113.28.
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 119.53 and the TLT should try and retest 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 popped up Friday and closed at 104.02.
If it can close today above 103.91, it should try and make a move up to 106.
XLE:
Major level - 71.88
Minor level - 69.53 *
Major level - 68.75
Minor level - 67.97 *
Minor level - 66.41
Major level - 65.63
Minor level - 64.85
Major level - 59.38
64.85 is a key level for the XLE.? The XLE closed? Friday at 64.70, so if the XLE cannot reclaim 64.85 today, it should try and retest 62.50.
The pipelines continue to crash.? They should provide a decent snapback once the XLE can find some 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 never got down to the 112.50 level and stalled Thursday at $155.11.? Friday is rallied over 3% and closed at 119.03.
Next minor level is 121.31.? Two closes above that level and it should make a run to 125.
Watch list:
Bullish Stocks: GOOGL, PANW, ULTA, COST, NFLX, DY, FSLR,? ACN, LLY, EXR, CLX, QIHU, CRM
Bearish Stocks: CMG, CBRL, SRCL, PVH, UNP, AXP, AKAM, CAR, BIG, HAIN, FOSL
Be sure to check earnings release dates.
