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
X Long at $14
Total Premium collected - $.89
ASNA Long at $14.20
Total Premium collected - $.75
ETE Long $14.05
Total Premium collected - $1.05
P Long $13.38
Short Jan $14 Call - $.35
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The markets all sold off yesterday, with the S & P 500 down just over 36 points on the day.
Even though the VIX was up 2 or 10%, it really was not a big move. In fact, the VIX did not even come back to retest the 23.44 level. Look for that to be resistance today.
Also, yesterday had a selling climax with the down to up volume reaching 9.46 to 1.
It is possible, the markets retest the lower bands on this drive. The lower band for the S & P 500 is 1,876, so the market is not far from it.
If the market can hold above the lower band, I would expect a rally back up to the 2,000 area.
Also, 1,875 should be a key support level. If it cannot hold, I would fully expect a retest of 1,812.
The lower band and the major 1,875 support level are within 1 point of each other.
1,921.88 is the downside confirming level to 1,875. The market will have to recoup that level today, so it should be a level to watch today.
Here are the key levels for the markets.
VIX:
Major level - 37.50
Minor level - 32.81
Major level - 31.25
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
Still looking for the 18.75 level as the the objective.
The 23.44 and 25 levels should act as resistance.
Watch how the VIX reacts around these levels.
S & P 500 Cash Index:
Major level - 2,000.00
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
To move up, the S & P would need two closes above 1,953. The objective would then become 2,000.
1,921 is the key level for today.
Short term intra day charts have shifted into uptrends.
Showing some signs of bullishness.
Nasd 100 (QQQ):
Major level - 106.25
Minor level - 105.47
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
The objective should still be to 106 level.
102.34 should be a key level for the QQQ today.
It will need to close back above it in order to move higher.
TLT:
Major level - 131.25
Minor level - 128.91 *
Major level - 128.13
Minor level - 127.34 *
Minor level - 125.78
Major level - 125.00
Minor level - 124.22
Minor level - 122.66
The TLT hit the 128.13 objective yesterday and had a high of 129.04.
A close today above 128.91 and the objective becomes 131.25.
Lower levels should act as support.
GLD:
Major level - 109.38 *
Minor level - 107.03
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
The GLD is within 1 point of the 109 objective.
As I have been saying, if 109 gets hit, it sets up some opportunities on the long side.
Lower levels should act as support.
XLE:
Major level - 59.38
Minor level - 58.60
Minor level - 57.03
Major level - 56.25
Minor level - 54.69 *
Minor level - 51.56
Major level - 50.00
Minor level - 43.75
The XLE did have two closes above 57.03, so the objective should be to 59. I am still biased for a move to 59.
The XLE came within 4 cents of the 55 support area I mentioned yesterday.
To move down, the XLE would need two closes under 54.69.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple back under the lower band on the daily chart.
Still showing a lot of weakness.
93.75 is the key level to watch.
Also, it will still need two closes under 93.75 to confirm a move lower.
Watch list:
Bullish Stocks: FRT, STZ, MCD, DLR, ATO, ED, FSLR, PNW
Bearish Stocks: TSLA, BWLD, ALXN, MNST, PII, BIDU, VRTX, SWK, GILD, LAD, HAR, TRIP, BABA, Q
Be sure to check earnings release dates.
