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.
GOGO? Long at $19.93
Total Premium Collected? $1.95
ASNA Long at $14.20
Total Premium Collected $.75
DUST Long $4.50
Total Premium Collected? $.70
DYN Long at $12.55
Premium Collected $.48
FEYE Long at $13.65
Total Premium Collected $.28..
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Before I begin, I do need to mention that I inadvertently carried the FCX position on yesterday?s update.? As you know, you should have been assigned on the calls last Friday.
Yesterday, the S & P 500 gave back 11.63 points. This is not a real shock as you know that we had been on the look out for a bounce in the VIX at its long term support level.
Also, I mentioned last week that a place to consider shorting the markets was around the 2,203 level.? The reason is that when an objective is achieved, often the market will pull back at the next confirming level.? Which just happens to be 2,203.12.
However, at this time, the S & P 500 has had two closes above 2,203.12, which means that the active target is to 2,250.
Any shorts at this point should be quick trades, as I would expect another rally.
The issue is where support for the S & P 500 should be and resistance on the VIX.
I will review those levels below.
Continue to monitor the levels for entry points.
Here are the Key Levels for the Markets:
$VIX:
Major level ? 14.06
Minor level ? 13.67
Minor level ? 12.89 **
Major level - 12.50
Minor level ? 12.11
Minor level ? 11.33
Major level ? 10.94
The VIX closed at 13.15 yesterday, just above the 12.89 level.? This should tell us how far the VIX should move up.? If the VIX can close above 12.89 today, then the objective should be to 14.06.
If the VIX does close above 12.89, it sets up a scenario where the S & P 500 should drop further.
The VIX could run up to 15.63 without impacting the downtrend.? In fact, that is about the farthest I see it going.
14.45 could also offer resistance.
Watch to see if the VIX reverses to the downside, as that will be the indication that the S & P 500 should rally.
$SPX:
Major level - 2,250.00
Minor level - 2,234.38 *
Minor level - 2,203.12 *
Major level - 2,187.50 *
Minor level - 2,171.88
Minor level - 2,140.62
Major level - 2,125.00
Minor level - 2,109.38
Minor level - 2,078.12
Major level - 2,062.50
The S & P 500 closed under 2,203.12, at 2,201.72 yesterday.? The S & P 500 will need to reclaim the 2,203 level today to move higher.? With a close under 2,203, the S & P 500 should retest 2,187.50.
2,195.30 should offer minor support.? And obviously, 2,203.12 is a level to watch.
QQQ:?
Major level - 121.88
Minor level - 121.10
Minor level - 119.53 *
Major level - 118.75 *
Minor level - 117.97
Minor level - 116.41
Major level - 115.63
Minor level - 114.84
Minor level - 113.28
Major level - 112.50
The QQQ closed at 118.53, just under the 118.75 level.? At this point, the QQQ will need two closes above 119.53 to move up to 121.88.
118.36 should offer minor support.? Watch to see if this level holds.
TLT:?
Minor level ? 128.91
Major level ? 128.13
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 -? 117.96
The TLT closed at 121.71. To move to 125, it will need two closes above 121.88.
121.88 is a key level and could offer strong resistance.? I do expect lower levels for the TLT.
GLD: ?
Minor level ? 117.97
Minor level -? 116.41
Major level ? 115.63 *
Minor level ? 114.85
Minor level ? 113.28
Major level ? 112.50 *
Major level ? 109.38
The GLD is getting a bounce off the 112.50 level.? To move higher, the GLD will need two closes above 113.28.? Yesterday, the GLD closed at 113.80, so a close above it today and the GLD should move up to 115.63.
I do expect another downswing.
XLE:
Major level - 75.00
Minor level - 74.22
Minor level - 72.66 *
Major level - 71.88 *
Minor level - 71.10
Minor level - 69.53
Major level - 68.75
Minor level - 67.96
Minor level - 66.41
Major level - 65.63
The objective for the XLE should still be to 75.
Having said that, the XLE closed under 71.88, at 71.71 yesterday.? Support should be at the minor 71.10 level.?
FXY:
Minor level: 89.45
Major level: 89.06
Minor level: 88.67
Minor level: 87.89
Major level: 87.50 *
Minor level: 87.11 *
Minor level: 86.33
Major
level: 85.94 ***
The FXY has now had two closes under 85.94.? The implication now is that it could move down to the 81 to 83 area.
However, the FXY did bounce yesterday off it?s oversold condition.
To move up to 87.50, the FXY will need two closes above 86.33.? Yesterday, is closed under that level.
If it does run to 87.50, I would expect strong resistance at that level.
AAPL:
Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.
Not much different from last update.? Watch the 112.50 level. If it is cannot get through this level, expect a pullback.
A pullback here would be an opportunity to get long.
WATCH LIST:
Bullish Stocks: PCLN, HUM, GS, MLM, FDX, BA, RTN, CMI, AET, UHS, CVX, DE, CAT, PZZA, KLAC, JPM, DDS
Bearish Stocks:? AGN, BIDU, PANW, ALXN, RGR, FSLR, VRX
Be sure to check earnings release dates
