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.
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GOGO? Long at $19.93
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X Long at $14
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ASNA Long at $14.20
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ETE Long $14.05
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P Long $13.38
Short Jan $14 Call - $.35
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I thought yesterday's webinar was pretty instructive because I was trying to respond to a member's question about how to interpret the support / resistance levels I share.
We looked at an actual example from Tuesday's mid day price action.? And what the implications should be for the markets.
As the webinar was going on, I mentioned that the 1,890.62 level should act as support for the S & P.
A member typed in saying that the low for the day was 1,891.
You most likely know by now what happened the rest of the day.
If you don't, this is what happened.? From the price of 1,891, the S & P 500 proceeded to rally to a high of 1,932.08.? That was a move of 41 points from the support line.
The statement I did not mention on the webinar yesterday was where would you have expected the market to rally to after stalling on the 1,890.62 line?
If you know the answer or want to take a guess, please email me at davismdt@gmail.com.
I will share the answer tomorrow.
Here are the key levels for the markets.
?
VIX:
Minor level - 29.68
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
After a one day spike, the VIX sold off and closed at 20.72 yesterday.
The objective is still down to 18.75, however watch the 20.31 level, as it could offer some support.
S & P 500 Cash Index:?
Major level - 2,000.00
Minor level - 1,984.38
Minor level - 1,953.12 *
Major level - 1,937.50 *
Minor level - 1,921.88
Minor level - 1,890.62
Major level - 1,875.00
Minor level - 1,859.38
Minor level - 1,828.12
Major level - 1,812.50
Minor level - 1,796.88
The 1,890 level offered strong support yesterday and the market rallied to close back above the 1,921.88 level.
Short term support should be at 1,925.80 and 1,918.
A retest of 1,937.50 should be the objective.
Nasd 100 (QQQ):?
Major level - 106.25
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
Minor level - 102.35
Minor level - 100.78
Major level - 100.00
Minor level - 99.21
Minor level - 97.66
Major level - 96.88
Like the S & P 500, the QQQ held support at the 100 level.? Actually, the low for the day was 99.77 or 23 cents under the level.
101.56 should be minor support.? A close today above 102.35 and the objective is back to 103.13.
TLT:?
Major level - 137.50
Minor level - 136.71
Minor level - 135.16
Major level - 134.38
Minor level - 133.60
Minor level - 132.03 *
Major level - 131.25
Minor level - 130.46
Minor level - 128.91
Major level - 128.13
The TLT closed yesterday exactly on the 131.25 level.? Two closes above 132.03 and the objective should be to 134.
128.13 and 131.25 should be major support for the TLT.
GLD:
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
Minor level - 113.28
Major level - 112.50
118.75 level was hit yesterday.? Two closes above 119.53 and the objective should be to 121.88.
121.88 is a major level and one I think would be tough to get through on the first attempt.
XLE:
Minor level - 60.16
Major level - 59.38
Minor level - 58.60
Minor level - 57.03 *
Major level - 56.25 *
Minor level - 54.69
Minor level - 53.19
Major level - 53.13
The XLE rallied to close above the 56.25 level yesterday.? 56.25 should be support.
Two closes above 57.03 and the objective should be to 59.38.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple dropped under the 93.75 level and rallied to close at 96.10.
Look for a move up to 100.? 100 remains a key level for Apple.
Watch list:
Bullish Stocks: KMB, TLT, CLX, NEE, RNR, GOLD, PM, SAFM, EW, PG, ATO
Bearish Stocks: BIIB, GS, SIG, VRX, JACK, CERN, PANW, VRSK, ALNY, CERN, AIG, AGU, BG, SOHU, XL??
Be sure to check earnings release dates.
