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
Short Nov 6th-$14 Call - $.35
ASNA Long at $14.20
Premium collected - $.30
ASNA Long at $14.20
Premium collected - $.30
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Friday, the S & P 500 hit our 2,093.80 objective.
The high for the day was 2,094.32.
So, it took it out by about 50 cents before selling off almost 15 points.
At this point, we want to watch how the S & P reacts at the lower levels to determine if it will pullback more.
2,085.98 is the downside level and the S & P closed under it on Friday. So, a close today under 2,085.98 and I would expect a move down to 2,062.50.
Also, the S & P is above the midband on the daily charts. I would expect it now to act as support.
That level is 2,057.87, which is not too far from the support line of 2,062.50.
As a final comment, the S & P could drop down to 2,031 and the uptrend would be in tact.
A move below 2,000 would change that scenario.
Friday is non farm payroll, which can create excess volatility for the markets.
And earnings continue this week with TSLA reporting tomorrow after the close. FB reports Wednesday after the close.
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 - 17.18 *
Minor level - 14.06
Major level - 12.50
The VIX stopped at 14 before rallying Friday and closing at 15.07. Resistance should be at 17.18.
S & P 500 Cash Index:
Minor level - 2,101.62
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
Major level - 2,000.00
2,093.80 objective achieved.
2,070 should be 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
Major level - 106.25
The objective should be to 115.63.
Support should be at 113.28 and 112.50.
The QQQ close Friday at 113.33, just 5 cents above the 113.28 support line.
TLT:
Major level - 128.13
Minor level - 125.78
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
The TLT is back above the 121.88 support level.
It continues to trade between 121.88 and 125.
A close above 122.66 today and it should retest 125.
GLD:
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
The GLD did retest the 109.38 level Friday, closing at 109.30.
To move lower, it would need two closes under 108.60
XLE:
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 objective still remains to 68.75.
Buying against support makes the most sense at this point.
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 did clear the midband yesterday and is up over $120.
Objective should be to $125.
Watch list:
Bullish Stocks: PCLN, GOOGL, AMZN, ORLY, NOC, ATHN, EXPE, ATHN, HD, CLX, CLB, MCD, VRSN, CRM, V, JOE, DF, ADBE
Bearish Stocks: FLT, IBM, CMI, AGU, SWKS, LULU, STX, SCTY, YELP, FEYE DV, NUS, POT
Be sure to check earnings release dates.
