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
Net Debit - $1.70
VNR Long at $8.91
Short September $9 call @ $.50
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Yesterday ended with a small loss in the S & P 500.
I suspect this will be the trading action for the week until Thursday, when the Fed provides some clarity on interest rates.
The shorter term charts are staring to firm up and showing some strength.
And the VIX is still under the extreme upper bollinger band on the daily chart.? That level is 26.97 and should act as resistance at this point.
I am still biased to the upside because the S & P 500 has confirmed a move up to 1,968.
Now onto the markets.
Here are the key levels for the markets.
Stocks...
?
VIX:?
Minor level - 32.81
Major level - 31.25
Minor level - 29.68
Minor level - 26.56
Major level - 25.00
Minor level - 23.44 *
Major level - 18.75
The VIX closed yesterday at 24.25, just above the 23.44 level.
Look for resistance at 26.56 and 25.?
Two closes under 23.44 and the VIX should drop to 18.75.
Remember, as the VIX drops, the markets should head up.
S & P 500 Cash Index:?
Minor level - 2,007.82
Major level - 2,000.00
Minor level - 1,992.18
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
Minor level - 1,914.12
Major level - 1,906.30
The active objective remains at 1,968.80.
Minor resistance should exist at 1,976.62 and support should be at 1,945.32.
Yesterday's low was about 3 points above the 1,945 support level.
Nasd 100 (QQQ):?
Major level - 112.50
Major level - 109.38
Minor level - 107.03
Major level - 106.25
Minor level - 105.46
Minor level - 103.91 *
Major level - 103.13
Minor level - 102.34 *
Major level - 100
The QQQ hit a high yesterday of 105.98, just 27 cents away from the objective of 106.25.
105.46 should act as support.
The QQQ would need two closes above 107.03 to move up to 109.38.
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 - 121.09
Major level - 115.63
The TLT closed 30 cents under the 121.88 level yesterday.
121.09 should act as support.? The TLT would need two closes above 122.66 to move 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 closed yesterday at 106.22, just 3 cents under the 106.25 level.
Two closes under 105.46 and it should drop to 103.13.
Two closes above 107.03 and the GLD should move up to 109.38.
105.46 should act as support.?
It is getting closer to a long term bottom.
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
Yesterday's low was exactly 62.50, which is the level I keep saying should be strong support.
If it starts to move show some bullish price action, it is possible a major long term bottom is setting up.
We would need a bit more technical confirmation for that to happen, however, it is right at a key level of support.
By the way, if it breaks down, that will tell you that the XLE wants to head lower.
Patience is key at the moment.
Apple:
Major levels for Apple are 118.85, 112.50, 106.25, 100, 93.75 and 87.50.
100 should be a major support level for Apple.?
Apple popped up to a high yesterday of 116.58.? This shows you the risk with short term options.? We were right on direction, but did not get the movement I had anticipated when we needed it.
At this point, 114 should be support, with an objective to 118.75.
Watch list:
Bullish Stocks:? BWLD, MLM, INCY, VMC, RCL, ALK, DY, GAS, MOH, CTB, TPX, LB, JBLU
Bearish Stocks: ALXN, JAZZ, MMM, BIDU, FFIV, KMB, MON, WYNN, BG, DECK, QCOM, CAT
Be sure to check earnings release dates.
