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
Total Premium Collected $.68
DDD Long at $15.16
Total Premium Collected - $.49
Short Dec 23rd - $15.50 call - $.25
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I don?t want to sound like a broken record, but it goes without saying that, as theS & P 500 and the VIX continue to hit their respective upside and downside objectives, you do NOT want to consider shorting the market.
This market is the perfect example of how you can be fooled trying something like that.
The logic does not make sense, but markets are not sensible.? They can run in one direction a lot longer than you think they will.
There is no question the market is overbought, but that does not mean you fight it.?
It seems like a long time ago, when I said the ultimate objective for the S & P 500 was to the 2,250 level.
With that level taken out, it is now within 11 points of its next upside objective, which is 2,281.
Ultimately, I believe it goes to 2,312.? But, it may pull back first before heading there.
The advantage you have is the very specific price levels that confirm whether a move should continue or not.? For example, we knew that if the S & P 500 closed above 2,257.82 for two days, it should make a run to 2,281.
That happened on December 13th and 14th.
We also gain the benefit of monitoring the VIX.? With the VIX, the key level was 12.11. Two closes under the level and the VIX should continue down to 10.94.? The implication being that the markets should head higher.
Also, the bullish % index reads 70.80%.? This is still below the extreme level of 80% which indicates over exuberance and a potential topping formation.
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
Objective should be to 10.94.? 11.33 should be minor support.? 11.72 minor resistance.
?
$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
Active objective is to 2,281.30.? 2,273 could offer resistance.? Minor support should be at 2,270 and 2,265.60.
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 objective is still to 121.88.? 120.31 should offer minor support. 120.90 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
The TLT closed under 117.96 yesterday.? It closed at 117.81.? A close today under 117.96 and the TLT should drop to 115.
Multiple timeframes remain bearish.
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
The GLD could not hold the 108.59 level. It closed at 107.79.? A close today under 108.59 and the GLD should drop to 106.25.
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. 75.78 should offer support.
76.17 should offer minor resistance.
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
The FXY gapped down and closed at 81.82.? A close today under 81.84 and the FXY should drop to 81.25.
Opportunity continues to 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 did close above 116.41 yesterday.? The objective should be to 118.75.
Buying against support is still the best strategy.
WATCH LIST:
Bullish Stocks: D
IA, 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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