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.
ASNA Long at $14.20
Total Premium Collected $.75
DUST Long $4.50
Total Premium Collected $.70
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
..........................................................................................
Next week will be a short week due to the markets being closed Monday in celebration of Christmas. ?I do want to wish you and your family a very Merry Christmas. ?And also a Happy Hanukkah!
With low volume, the markets tend to move without a lot of conviction. ?And this is the kind of price action I would generally expect into year end.
The S & P 500 ended up closing to downside 4.22 points, at 2,260.96. ?If you do trade intra day, I mentioned that if the market breaks under 2,265.60, then it should act as resistance.
The market opened at 2,262.93. ?The first move of the day was down to 2,256. ??This was just under the minor 2,257.82 support level. ?From there, the market bounced up and ran up to 2,261.96.
The levels can help for intra day trading, especially when you combine them with the levels on the VIX.
Anyway, I suspect the balance of this year will be relatively quiet and we will see of this type of price action.
There is one open position that expires today and that is short $15.50 call on DDD. ?DDD sold off a bit and is trading around $14.20, so I do expect the calls to expire worthless. ?Leave the position as is and if anything changes into the close, I will send a separate email.
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
The VIX did close above the minor 11.33 level at 11.43. The implication is that if the VIX closes above 11.33 today, it should try and test 12.50. ?11.72 should be 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. ?2,261.17 is a minor support level and the S & P closed under it yesterday. ?A close today under 2,261.17 and I would expect a test of 2,250.
2,269.50 is the minor upside level to 2,281. ?It has been resistance for the past three days.
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
120.31 did offer support yesterday. ?The QQQ closed at120.12, just above the minor 119.63 level.
119.92 could offer minor support.
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 at 117.81. ?Objective still remains to 115.62. ?117.97 should be resistance.
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
Major level: 100.00
The GLD crossed into a downtrend on its daily chart. ?Though it is oversold, I would suspect that any bounce would fail. ?Most likely at the 109 level. ?A rally would be an opportunity to short.
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
The XLE closed at 76.42. ?76.27 is a minor support level. ?If the XLE closes under that level for two days, I would most likely test 75 again.
Look for 75.78 to continue to offer support.
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
Minor level: 81.64
Major level: 81.25 **
Major level: 79.69
I would expect a test of 82.81, which should be resistance. The FXY would have to run to 85.94 to convince me this downtrend is over. 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.
Yesterday?s low was 115.64. ?If it level holds, it maybe the opportunity to get long. ??Intra day momentum is bullish.
Buying against support is still the best strategy.
WATCH LIST:
Bulli
sh 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
Legal Disclaimer
There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.
December 26, 2016 - Quote of the Day