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
Premium collected - $1.25
NCR Long Jan 16 $27 Call
Net Debit - $.80
X Long at $14
Premium collected - $.89
ASNA Long at $14.20
Total Premium collected - $.75
Short Nov $14 Call - $.45 collected
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The markets gave back almost one half the recent upmove in one week.? The S & P 500 closed down 76.16 points last week.
2,031 should have been a support level and the S & P sliced right through it and closed at 2,023.04 on Friday.
The next major support level is 2,000 and if that does not hold, it is quite possible the S & P could retrace this whole upmove and drop to 1,875.
The VIX closed up just over 40% last week at 20.08.
Pre open, the market appear ready to bounce up.
I would use a rally as a chance to get short.
Here are the key levels for the markets.
?
VIX: ?
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
I mentioned Friday that I did not expect the VIX to take out 20.31, and Friday's high was 20.67.
The VIX ended up closing at 20.08, however it would need two closes above 20.31 to move up to 25.
The fact that it took out 20.31 indicates to me that it should head higher.
As the VIX heads higher, look for the markets to continue lower.
25 should be a strong resistance level, however a break above it would mean it could possibly retest the prior highs around 50.
S & P 500 Cash Index: ?
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
Minor level - 2,039.12
Major level - 2,031.30
Minor level - 2,023.48
Minor level - 2,007.82
Major level - 1,968.80
Friday, the S & P closed at 2,023.04, just under the 2,023.48 level.? A close today under that level would indicate a move down to 1,968.
2,000 should be strong support.
Nasd 100 (QQQ): ?
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
Minor level - 108.60
Minor level - 107.03
The QQQ is almost at the 109.38 level.
Two closes under 108.60 and the objective becomes 106.25.
I would expect resistance at 112.50.
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 move up to 121.88.
I would expect resistance at 125.
GLD:
Major level - 112.50
Minor level - 111.72
Minor level - 110.16
Major level - 109.38
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
Minor level - 102.34
If the GLD can hold the 103.13 level, it could move up quickly.
This is a very key support level and if it does not hold, look for the GLD to move down to the 97 area.
XLE:
Minor level - 75.78
Major level - 75.00
Minor level - 72.66
Major level - 71.88
Minor level - 69.53 *
Major level - 68.75
Minor level - 67.97 *
Minor level - 66.41
Major level - 65.63
The XLE did drop back to the 65.53 level on Friday.
This should be a key level for the XLE and if it cannot hold, look for a move down to the
60 area.
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 closed just under the 112.50 level.? If Apple breaks under 109.38, look for it head lower.
Watch list:
Bullish Stocks: TAP, CBOE, QIHU, TSS, WX, OMI, G, RATE
Bearish Stocks: CMG, BWLD, ANTM, FFIV, CVS, HSY, DDS, VRX, AXP, JACK, IBM, LULU, CLH, HAIN
Be sure to check earnings release dates.
