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
Short Dec 16th-$14 Call - $.40
DDD Long at $15.16
Short Dec 16th-$15.50 Call - $.24
........................................................................................
Both open short calls positions expired Friday. Therefore, the profit on each position has been booked.? I will look to sell more calls this week.
The week ended with the S & P 500 selling off 1.46 for the week. For the day, the S & P 500 pulled back 3.96.
Last week formed almost a perfect narrow range doji bar.? The open for the week was 2,258.83 and the close was 2,258.07. And the range for the week was 29.09 points.
With an average true range of 43.63 points, last week?s range contracted about 66% of the ATR.
A doji bar can mean indecision.? It can also mean a pause in the move.? The question is how should be interpret this price action?
The odds favor a continuation of the move.
This is because Friday, the S & P 500 closed at 2,258.07.? This was the second consecutive day where the S & P 500 closed above 2,257.81.
Based on that, the objective for the S & P 500 should be to 2,281.30.
Intra day charts for the markets remain bullish, so this should help to fuel the market to its objective.
The VIX remains oversold and is back under 12.50.? Rallies should find resistance.
This week is a full week of trading.? Next Monday, the markets will be closed for the Christmas holiday.
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
Major level ?? 9.38
With a close at 12.20, 12.50 and 12.89 should be resistance.? Watch 12.11.?? Two closes under 12.11 and the VIX should drop to 10.94.
11.72 should be minor support.
$SPX:
Major level ? 2,281.30
Minor level ? 2,273.48
Minor level ? 2,257.82 **
Major level - 2,250.00 **
Minor level - 2,242.18
Minor level - 2,226.62
Major level - 2,218.80
2,250 should act as support.? 2,281.30 should be the objective and a difficult to get through on the first attempt.
2,273 could offer resistance.
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
The QQQ did close above 119.53 on Friday, therefore the objective should be to 121.88.?? 119.53 should now be support.
120.31 could offer resistance.
TLT:?
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 *
Minor level ? 116.41
Major level ? 115.62
Objective for the TLT should be down to 115.62.? 116.80 is a minor level to watch.? Two closes under 116.80 and it will further confirm a move down to 115.62.
117.58 should be resistance.
GLD: ?
Minor level: 113.28
Major level: 112.50
Minor level: 111.72
Minor level: 110.16
Major level: 109.38 **
Major level: 106.25
Major level: 103.13
109.38 should now be resistance.? Still looking for a downside objective of 100.
106.25 could offer support.? Short term oversold, but the daily chart is close to moving into a downtrend.
XLE:
Major level ? 78.13
Minor level ? 76.56 **
Minor level ? 75.78
Major level - 75.00
Minor level - 74.22
Minor level - 72.66
Major level - 71.88
Minor level - 71.10
Minor level - 69.53
Objective should be to 78.13. 76.17 should be short term support. Buying against support is still the best strategy on the XLE.
FXY:
Minor level: 87.11
Minor level: 86.33
Major level: 85.94
Minor level: 85.55
Minor level: 84.77
Major level: 84.38
Major level: 82.81
Major level: 81.25 **
Major level: 79.69
Same as Friday.
Here is what I am looking for. If the FXY breaks under 81.25, I would expect it to bounce around for while before a directional move begins again.
Also, on a break under 81.25, the key price level to watch is 78.13.? If it continues under that level, I would expect more downside.
Opportunity continues t
o exist to short rallies.
AAPL:
Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.
Apple closed above 115.63 again.? Buying against support is the best strategy.
WATCH LIST:
Bullish Stocks: DIA, AVGO, HSY, ALGN, XOM, VMW, BLUE, OKS, CCOI, COP,
LUV, BIG, CLH, MSFT
Bearish Stocks:? ALXN, TLT, VRSN, CRM, TRIP, CTRP, VRX
Be sure to check earnings release dates.
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