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
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The slow year end trading continued last week.? For the week, the S & P 500 closed at 2,263.79, up 2.83 for the week.
The range for the week was only 16.48 points. When you compare the weekly range of 16.48 to the average true range of 41.69 points, you can see how slow the trading has been.
Last week also qualified as an inside day, with a lower high and higher low.? This contraction usually leads to an expansion, but my feeling is that it may happen after the new year.
The short term level we were looking at was 2,261.17.? And to see where the market closed in relationship to it.
A close under 2,261.17 and the S & P 500 would mostly retest 2,250.? A close above it would negate that scenario.
Friday, the S & P 500 closed just above it at 2,263.79.? At this point, 2,262.17 should act as support.
If the S & P 500 can hold the 2,263 level, a run to 2,281 would be expected.
Having said that, the VIX closed again above 11.33, so a bounce to 12.50 could be expected.? However, I would expect resistance at 12.50.
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 closed one penny higher Friday, at 11.44. I would expect a test of 12.50.? 11.72 should be minor resistance.? 11.33 should offer 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
Active objective is to 2,281.30.? 2,261.70 should offer support.? 2,265.60 could offer minor resistance.
2,257.82 should also offer major support.
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 closed again just above the minor 119.63 level. It closed at 120.20.
120.20 is a minor support level. If the QQQ can hold this level, it should move up to 121.? If it closes under 120.20 for two days, expect a drop to 119.53.
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 118.05.? Long term objective still remains to 115.62.? Short term, a bounce to test 118.75 should be expected.? 117.97 should offer minor support.
Multiple time frames 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
Longer term trend is bearish, but a short term bounce is expected.? 107.81 should be minor support, with an objective up to 108.59.? Friday, the GLD closed at 107.93, so watch to see if it can hold 107.81.
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 seems to be holding the 75.78 level.? 76.27 could offer minor support, with a short term objective up to 76.56.
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
Like the TLT, the FXY is oversold short term.? A retest of 82.81 should be expected. Opportunity will 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 115.59.? 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:
Bullish Stocks: DIA, AVGO, MMM, BA, CB, NF
LX, QQQ, CVX, JACK, NVDA, JPM, APC, WDC, MSFT, XLNX, CRUS, HIG, DFT
Bearish Stocks:? VRSN, VFC, KORS, CTRP, EXPR, OMER
Be sure to check earnings release dates
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Trade Alert (TLT) - December 27, 2016