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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Yesterday, the S & P 500 closed at 2,086.59, just above the 2,085.98 short term support level.
This morning there is weakness in the markets and it appears set to open lower.
There is a short term support level at 2,078.? If that level does not hold, I suspect a retest of 2,062.50 would be expected.
The VIX closed yesterday at 15.62.? That may not seem that material, however, it was second day that the VIX closed under 15.63.
At this point, I would expect resistance at 17.19 and 18.75.
When the VIX reverses to the downside off a resistance level is when the markets should head up.???
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
Resistance should be at 17.19 and 18.75.
Watch the 14.06 level as well, because it has acted as strong support as well as the 12.50 level.
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
Look for support at 2,085 and 2,070.? And also at the minor support level of 2,078.
Two closes under 2,085.98 and the S & P would try and retest 2,062.50.
Nasd 100 (QQQ):?
Minor level - 116.41 *
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
The objective should still be up to 115.63.
113.29 and 112.50 should act as support.
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
Objective should still be back to 121.88.
The TLT did close again above the 119.53 level.? Look for that to be support.
GLD:
Major level - 106.25
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
Minor level - 102.34
Major level - 96.88
The GLD failed to hold the 103.13 support level, and closed yesterday at 102.26.
A close today under 102.34 and it should head to 100.
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
A retest of 65.63 is the most likely scenario for the XLE.?
If it stops at 65.63 and reverses, it could move up fast.
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.?
I mentioned the down gap on Apple and how that is a level to watch.
Apple did not quite fill the gap before it reversed to the downside.
Support should be around 115.63.? If that cannot hold, look for a move back to 112.50.
Watch list:
Bullish Stocks: AMZN, COST, DIS, RTN, HD, DHR, DY, VRSN, JPM, AFL, DIS, MNST GE, XRS, OMI, PSX, ADBE, TSO
Bearish Stocks: CMG, ANTM, UNH, CVS, WYNN, JWN, TGT, AKAM, CF, QCOM, DKS, BKE, APC, GNC, COG
Be sure to check earnings release dates.
