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
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
ETE Long $14.05
Total Premium collected - $1.05
Short Jan 8th-$13.75 Call
P Long $13.38
Short Jan $14 Call - $.35
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The rally continued yesterday with the S & P 500 hitting the next upside objective, which was 1,937.50.
The S & P 500 closed at 1,938.68 or 1.18 above the objective.
The VIX sold off and hit a low just above the 21.88 level.
The key now will be the 20.31 level.? If the VIX can? break under that level, look for the VIX to head lower and this rally to keep going.
All markets have now closed back inside their lower bands on their 60 minute charts.? At some point in time, these levels will get retested again.
Here are the key levels for the markets.
?
VIX:?
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 - 18.85
Minor level - 17.19
A close today under 23.44 and the VIX should drop to 18.75.
However, support should be at 20.31.
Watch how the VIX acts around this level.
S & P 500 Cash Index:?
Minor level - 1,976.52
Major level - 1,968.80
Minor level - 1,960.88
Minor level - 1,945.33
Major level - 1,937.50
Minor level - 1,929.68
Minor level - 1,914.13
Major level - 1,906.30
Lower levels should be support.? Two closes above 1,945.33 and the objective becomes 1,968.80.
Resistance should be at 2,000 and 1,968.
Nasd 100 (QQQ):?
Major level - 109.38
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
Minor level - 105.47
Minor level - 103.91
Major level - 103.13
Major level - 100.00
The QQQ fell short of the 106.25 level by 8 cents yesterday.
Look for support at 105.47.? Next objective is to 109.38.? Two closes above 107.03 and the move is confirmed.
TLT:?
Minor level - 125.78
Major level - 125.00
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
A close today above 122.66 and the TLT should hit 125.
121.88 has been strong 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
103.91 is the minor support level at this point.
If this level holds, look for a move up to 106.
XLE:
Major level - 59.38
Minor level - 58.60
Minor level - 57.03
Major level - 56.25
Minor level - 54.68 *
Minor level - 51.56
Major level - 50.00
Two closes under 54.68 and the XLE should drop to 50.? Yesterday, the XLE closed at 55.65, so two closes under 54.68 is still in effect.
Yesterday's low was virtually on the lower band on the daily chart, which should act as support.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75, and 87.50.
106.25 should be resistance at this point.
Apple closed back inside the lower band on the daily chart.
Look for a short term push up.
Watch list:
Bullish Stocks: STZ, EXR, DLR, MO, CIBE, FXCM
Bearish Stocks: CMG, FDX, IBM, GS, GD, FLT, UHS, CP, RL, FFIV, GRA, HAR, AGU, CXO, UNP, XOM, SWKS
Be sure to check earnings release dates.