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 15 $27 Call
NCR Short Jan 15 $29 Call
Net Debit - $0.70
X Long at $14
Short September 25th $14 Call @ $.54
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It looks like earnings season is beginning with a strong move. Actually, it does not begin until tomorrow, but YUM reported and is down over 15% pre open.
I fully expect we will see moves of this magnitude and greater this earnings season.
As the season progresses, I will share some strategies on trading after an earnings release.? These set ups are greatly enhanced if a company reports on a Thursday afternoon and they have weekly options.
The markets paused yesterday.? After a 100 point rally in the S & P in only 5 days, you would expect a pause.
This morning, the futures are trading to the upside, so I would expect the upside objectives to be hit.
The oil market continues to move up.? The bottom came one penny above the support line.
I would like to see a move up to the 68.75 line to confirm a major long term bottom is in.
The XLE is 1.51 away from the price line.
Here are the key levels for the markets.
Stocks...
?
VIX:?
Minor level - 29.68
Minor level - 26.56 *
Major level - 25.00
Minor level - 23.44 *
Minor level - 20.31
Major level - 18.75
Minor level - 17.18
Major level - 12.50
Yesterday's low was 18.82 or 7 cents above the 18.75 support line.
I would expect that 20.31 and 23.44 should be resistance.
The key now is it if the VIX can close for two days under the 18.75 level.? If it can, I would expect the VIX to drop further and the markets to continue higher.
S & P 500 Cash Index:?
Major level - 2,000.00
Minor level - 1,976.62 *
Major level - 1,968.80
Minor level - 1,945.32 *
Major level - 1,937.50
Minor level - 1,929.68
The S & P did close above 1,976.62 yesterday, so the objective should be to 2,000.
Look for support at 1,976.62 and 1,968.
Nasd 100 (QQQ):?
Major level - 109.38
Minor level - 108.60
Minor level - 107.03
Major level - 106.25
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
Minor level - 102.35
Minor level - 101.78
Major level - 100.00
The objective should be to 106.25.
I would expect support at 105.46 and 103.91.
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 hit a low of 122.41 yesterday, before reversing to the upside.
The was just under the minor support level of 122.66.
If this level holds today, I would expect a move back up to 125.
GLD:
Major level - 112.50
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
The GLD popped up and closed above the 109.38 level, at 109.86.
108.60 should be support.
Two closes above 110.16 and the objective should be to 112.50.
XLE:
Major level - 68.75
Minor level - 66.41 *
Major level - 65.63
Minor level - 64.84
Minor level - 63.28
Major level - 62.50
Minor level - 61.72
Minor level - 60.16
Major level - 59.38
A close today above 66.41 and the objective should be to 68.75.
Confirmation of a major bottom is very close.
?
65.63 should be support.
Apple:
Major levels for Apple are 118.75, 112.50, 106.25, 100, 93.75 and 87.50.
100 should be a major support level for Apple.?
Apple closed yesterday at 111.31.? Watch how Apple trades around the 112.50 level.? A clean break above it, and it should head higher.
If it stalls at 112.50, expect a move lower.
Apple is in a downtrend on the daily chart.
Watch list:
Bullish Stocks:? ORLY, PNRA, NKE, LEA, DPS, EXR, MCD, VRSN, ATO, CBOE,? CVC, PGR
Bearish Stocks: LSTR, R, FOSL, ADSK, RAX, ESPR, CUDA, GPS
Be sure to check earnings release dates.
