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 $32 Call
Net Debit - $1.70
VNR Long at $8.91
Short September $9 call @ $.50
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A quick reminder that at 12:00 EST today, we will be a live webinar. Hopefully you can make it. You should have received a link already to sign up for the webinar.
The webinar will be recorded and posted in the members area in the event you cannot attend live.
Now onto the markets.
The markets began September with continued selling.
The S & P 500 was down almost 60 points yesterday.
The DOW was down almost 500 points.
Yesterday also had the S & P 500 have the major bearish cross under I have been mentioning.
Having said that, yesterday was a selling climax with the down to up volume reading 30.71.
The S & P 500 is also at it's lower extreme bollinger bands on the daily charts.? The NASD market is well above the bottom band, but the DOW actually closed under that level.
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I would expect a bounce from these oversold conditions, which should set up some nice short trades.
Here are the key levels for the markets.
Stocks...
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VIX:?
Major level - 43.75
Major level - 37.50
Minor level - 32.81 *
Major level - 31.25
Minor level - 29.68 *
Minor level - 26.56
Major level - 25.00
Major level - 18.75
The VIX is still trading above the upper bollinger band on the daily chart.? The 25 level should be strong support.
Watch how the VIX reacts around the minor levels of 32.81 and 29.68.
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
Major level - 1,906.30
Minor level - 1,882.83
Major level - 1,875.00
The S & P 500 hit a low yesterday of 1,903.07 and closed at 1,913.85.
It managed to close above the 1,906 level I mentioned yesterday.
Watch how the S & P reacts around the 1,906 level.
Nasd 100 (QQQ):?
Major level - 109.38
Major level - 106.25
Minor level - 103.91 *
Major level - 103.13
Minor level - 102.34 *
Major level - 100
Major level - 96.88
Major level - 93.75
Major level - 90.63
Major level - 87.50
A close under 102.34 and the objective becomes 100.
100 should be a fairly strong level of support.
TLT:?
Major level - 131.25
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 *
Major level - 118.75
The TLT closed just above the 121.88 level, at 122.03 yesterday.
The TLT would need two closes above 122.66 to move up to 125.
Short term timeframes remain in uptrends.
GLD:
Major level - 115.63
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 109.20, just 18 cents under the 109.38 level.
108.60 should be support.? The GLD would need two closes above 110.16 to move up to 112.50.
XLE:
Major level - 68.75
Major level - 65.63
Minor level - 64.84
Minor level - 63.28 *
Major level - 62.50
Minor level - 61.72
Major level - 59.38
Minor level - 58.60
Major level - 56.25
The XLE dropped back under the 65.63 level yesterday.? A close today under 64.84 and the XLE should retest 62.50.
Apple:
Major levels for Apple are 112.50, 106.25, 100, 93.75 and 87.50.
100 should be a major support level for Apple.?
107.81 is a minor support level for Apple.? 110.93 is the confirming level for a move down to 106.25.? A close today under 110.93 and that should be the objective.
Watch list:
Bullish Stocks:? POST, UBNT, EXPR, NCT
Bearish Stocks: WHR, TIF, WYNN, VRNT, EAT, SAVE, ADSK, GPRO, DFT, JOY
Be sure to check earnings release dates.
