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
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ASNA Long at $14.20
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ETE Long $14.05
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P Long $13.38
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DUST Long $4.50
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It appeared there would be a bigger sell off based on the VIX spiking up.? However, it stalled right at 15 around 2:00 pm
and sold off into the close.?
This morning it appears that the weakness will follow through and the markets should open slightly to the downside.
Bias is still to the upside, and buying against software is still the preferred strategy at this point.
From a technical standpoint, the S & P 500 is now within a point from having it’s 200 ema cross above it’s 253 day average.
When that happens, it will indicate that the daily chart is now back in uptrend formation.? As a point of reference, the DOW has already had it’s bullish crossover.
The QQQ and the NASD Composite are the laggards. The 200 ema for the NASD Composite is about 60 points under
it’s 253 day average.
The weekly price bar for the S & P 500 should provide support. Support should be in the 2,073 – 2,075 area.? The S & P is still about 20 points above that level.
Here are the key levels for the markets.
Minor level – 20.31
Major level – 18.75
Minor level – 17.19
Minor level – 15.63 *
Minor level – 14.06 *
Major level – 12.50 *
Minor level – 10.94
The VIX closed at 14.69 yesterday.? This was just above the 14.06 level and under the minor 15.63 level.
The implication is that if the VIX closes today above 14.06, the upside should be to 18.75.
Having said that, the upside levels should still be resistance.
S & P 500 Cash Index:?
Minor level – 2,140.62
Major level – 2,125.00
Minor level – 2,109.38
Minor level – 2,078.12
Major level – 2,062.50
Minor level – 2,046.88
Minor level – 2,015.62
Major level – 2,000.00
The objective is now 2,125.
2,109.40 is a minor resistance level.
Support should be at 2,093.80 and 2,085.90.
Watch where the VIX and the S & P open today.
Nasd 100 (QQQ):?
Major level – 112.50
Minor level – 111.71
Minor level – 110.16 *
Major level – 109.38 *
Minor level – 108.60
Minor level – 107.03
Major level – 106.25
Minor level – 105.46
The QQQ had it’s first close above 110.16, yesterday, closing at 110.34.
If it closes above 110.16 today, the objective becomes 112.50.
Minor support should be at 109.38 and 108.98.
Major level – 132.81
Minor level – 132.42
Minor level – 132.03
Major level – 131.25 *
Minor level – 130.46
Minor level – 128.91
Major level – 128.13 *
Look for a push up to 131.25.? To move above that level, the TLT will need two closes above 132.03.
Minor levels are 129.69 and 128.91.
Major level – 118.75
Minor level – 117.96
Minor level – 116.41 *
Major level – 115.63
Minor level – 114.85 *
Minor level – 113.28
Major level – 112.50
The GLD looks to open higher this morning. Resistance should be around the 119 level.? The GLD is oversold on a short term basis.
The objective should be down to 112.50.
117.19 and 118.75 should be resistance.?
Major level – 71.88
Minor level – 71.09
Minor level – 69.53 *
Major level – 68.75 *
Minor level – 67.96 *
Minor level – 66.41
Major level – 65.63
Major level – 62.50
The 200 ema and the 253 day average for the XLE are exactly the same.? They are both 64.31.
On any push to the upside, the XLE should have the bullish crossover.
68.75 should still be the objective for the XLE.? However, 67.97 is a short term resistance level.
Short term support levels are 66.80, 66.41, 66.03.? The Major 65.63 level should continue to offer support.
Same as Friday.
Major levels for Apple are 106.25, 100, 93.75, and 87.50.
Apple is right against the major 100 resistance level.?
If it clears this area, then a continuation of the upmove would be expected, with an objective up to around the 109 area.
If Apple cannot break through 100, look for a retest of the low.
Bullish Stocks: AMZN, ULTA, MLM, BDX, WAT, RTN, CB, ZBH, CXO, CTXS, ALGN, DGX, FIS, WPX, HLX
Bearish Stocks:? SIG, ANTM, NKE, FL, HFC, CF, CVS, ERJ
Be sure to check earnings release dates.