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 - $1.25
X Long at $14
Short September 25th $14 Call @ $.54
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It really appeared that VNR would settle under the $9 strike price.? When I wrote the update Friday, it was hovering right around the $9 strike price.
After that, it slipped down to a low of $8.48, or about 50 cents under the strike.
Then, literally in the last 10 minutes of trading, the stock ran from $8.60 to close at $9.86.
Just a remarkable late day surge that resulted in your $9 calls getting assigned.
And this was on a day when the S & P was down 32 points.
The end result is a return of 6.1% for about three weeks. If you followed the original alert and used a full allocation on this position, the cash return should be just over $600.
One day after the Fed announcement to keep rates as is, it seems the market digested the news with bearish implications.? I also felt that triple witching day contributed to some of the volatility last Friday.
Having said that, a retest of the bottom band on the daily chart would not be out of the question.
For the S & P 500, that level is 1,893.? For the DOW, it is 16,140.
The NASD is the only market that has not had the bearish cross of the 200 ema under the 253 day average.
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
Minor levle - 17.18
The VIX closed Friday at 22.28,? just under the 23.44 minor level.
I would still expect 23.44 and 25 to act as resistance.
S & P 500 Cash Index:?
Minor level - 2,023.40
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 - 1,960.98 *
Minor level - 1,945.32 *
Major level - 1,937.50
Minor level - 1,929.68
Major level - 1,906.30
Minor level - 1,929 .68
Minor level - 1,914.12
Major level - 1,906.30
The S & P closed Friday at 1,958.03, so if it closes today under 1,960.98 it should drop to 1,937.50.
Nasd 100 (QQQ):?
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 QQQ closed Friday at 105.35.? If it closes today under 105.46, it should drop to 103.13.
Resistance should be at 107 and 108.60.
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 - 117.96
Major level - 115.63
The TLT closed Friday at 122.10, just above the 121.88 objective.
It would need two closes above 122.66 to confirm a move up to 125.
Lower levels should act as support.
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
Friday's high for the GLD was exactly the 109.38 objective. It will need to close above 110.16 to move up to 112.50.
107.03 should act as support.
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
The XLE is back to testing the major 62.50 level.? I suspect it will bounce between 59.38 and 65.63 until it decides to breakout or breakdown.
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.?
Major support for Apple should be at 106.25.? If it could drop that far, I think it sets up a decent buying opportunity.
Watch list:
Bullish Stocks:? STZ, SJM, VMC, DY, ALKS, TJX, HLF, BURL,
Bearish Stocks: PVH, MON, MWE, VRNT, ETP, CFX, DD
Be sure to check earnings release dates.
