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
..............................
The onslaught on Wall Street continues ... or should I say it continues around the globe?
After opening yesterday at 1,872.25, the S & P proceeded to sell off 44.79 points before finding a footing.
This level is back below the lower extreme band on the daily chart, which tells us that we will see these levels again.
It also happens that yesterday's low was within 34 cents of the minor 1,828.12 support level.? And that level also happened to be the lower band on the 30 minute chart.
Pre open, the S & P is off about 18 points, which would mean the it should open around 1,835.
The daily price bar should offer support around 1,840, which means it should be resistance, assuming an open under that level.
It appears that 1,812.50 will be retested.? If this cannot hold, 1,750 would be the next major objective.
Having said that, the markets are all oversold on a short term basis, so a bounce would be expected.
On another note, ETE sold off hard yesterday.? The only news of consequence was that their CFO resigned (or was fired).
When this type of action happens I do not like to make an impulsive decision.? I prefer to see how it plays out.
Over 134 million shares traded hands yesterday.? When you consider that the average volume is around 25 millions shares, it seems that a climax maybe in.? It doesn't mean that it can't go lower, but someone is buying those shares, so I tend to take notice.
Tomorrow is our bi-monthly webinar.? If you have any suggestions for tomorrow, please email them to me at:? davismdt@gmail.com
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
The VIX did take out the 25 level yesterday and closed at 26.
It would still need two closes above 26.56 for the? objective to be 31.25.
Lower levels should act as support.?
Very close to the upper band on the daily chart, which is 29.40.? How it trades around this level will tell us what to expect.
No question the VIX is overbought.
S & P 500 Cash Index:?
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
A close today under 1,859.38 and the S & P 500 should test 1,812.50.
Oversold based on the fact that the S & P 500 is under the lower bands on multiple timeframes.
Nasd 100 (QQQ):?
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
Minor level - 96.09
Major level - 93.75
The QQQ closed under the 96.88 level, at 96.62 yesterday.
Higher levels should act as resistance.
96.88 is a MAJOR level for the QQQ because if it closes for two days under that level, it could drop down to 87, which is another 10% from the current levels.?
If the QQQ closes under 96.88 today, I would expect a bounce to no more than 100.
TLT:?
Major level - 137.50
Minor level - 136.71
Minor level - 132.03
Major level - 131.25
Minor level - 128.91 *
Major level - 128.13
Minor level - 127.34
Minor level - 125.78
Major level - 125.00
The TLT spiked up and took out the 131.25 level, closing at 131.49.
It will need two closes above 132.03 to move higher.
The levels on the TLT have been spot on.
GLD:
Minor level - 113.28
Major level - 112.50
Minor level - 111.71
Minor level - 110.16
Major level - 109.38
Minor level - 107.03
Major level - 106.25
A close today above 113.28 and the objective is to 115.
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 - 53.19
Major level - 53.13
Minor level - 51.56
Major level - 50.00
Minor level - 43.75
Two closes under 54.69 and the objective becomes 53.
Yesterday, the XLE closed at 55.65, or above the 54.69 level.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
Apple keeps holding the 93.75 level.? And it is bouncing off the lower band.
If the market can firm up here, I would suggest a trade again on Apple based on it's oversold condition.?
Watch list:
Bullish Stocks: SAFM, FXE, WEC, AEP CMS, ED, PNW, ACC
Bearish Stocks: TSLA, BWLD, ALXN, MNST, PII, BIDU, VRTX, SWK, GILD, LAD, HAR, TRIP, BABA, Q
Be sure to check earnings release dates.