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.
No current positions.
Today’s Working Orders
No working orders.
There are a number of key levels to watch closely today, which I will review below.
I will not be around for the bulk of the day, due to the fact that I will be attending John Thomas’s Luncheon in New York City.
If you happen to be attending, please make sure to say hello.
Yesterday sold off after the inside day formation from Tuesday on the S & P 500.
This also happened to coincide with a bounce off the 12.50 level in the VIX.
VIX:? Key levels are 12.50 to 15.63
Short term levels:? 14.84, 13.28 and 11.72
The VIX would need two closes under 11.72 to head lower.
As I have mentioned, the 12.50 level has been rather strong support for the VIX for about three years.
Tuesday, I was prepared to suggest some calls on the VXX, however, I held off because the VIX could NOT close above 12.50.? On Tuesday, it closed at 12.11, under the support level.
Yesterday, it did bounce and closed at 13.26.
The KEY level for the VIX is 13.28, or two cents higher than yesterday’s close.
The significance of 13.28 is this.? If the VIX can close above 13.28 for two consecutive days, it would most likely make a run to 15.63.
This would mean the markets would continue their pullback.
A failure and the VIX should retest 12.50.
S & P 500 Cash Index:?
Key levels are 2,125 and 2,132.80
2,109.40 should be a support level. ?
2,132.80 should act as resistance.
The S & P 500 would need two closes above 2,132.80 to head higher, with an objective to 2,156.30.
Yesterday, the S &P 500 closed at 2,108.58
And yesterday’s high happened to be 2,125.10, or 10 cents above the 2,125 support line.
2,117.20 is significant at the moment.? If the S & P can reclaim this level, it should head higher.
A close under 2,117.20 today and the S & P should drop to 2,093.80.
If it can reclaim 2,117.20 today, the objective is back to 2,125.
Nasd 100 (QQQ):? The QQQ and the NASD composite continue to show the most strength of all the major markets.
Key levels now are 112.50 and 109.38.
109.38 to 110.16 should be support.
Yesterday, the QQQ closed at 110.22, just above the 110.16 level.? The objective is to 112.50.
TLT:? Key levels are 118.75 and 115.63.
115.63 and 114.85 should be support. ?
The key on the TLT at the moment is if it can close above 116.41 today.? If it can, it should move up to 118.75.
The level after 118.75 is the 122 area.
GLD: Key levels are 115.63, 114.06, and 112.50.
Yesterday, the GLD close at 112.58, just 8 cents above the 112.50 level.
112.89 is the level just above 112.50.? And 112.11 is level just under it.
Two closes above 112.89 and the GLD should head up to 114.? Two closes under 112.11 and it should drop to 110.94.
The metal is more oversold than the miners.
XLE: Key levels are 78.13 and 75.
Short term support levels for the XLE are 77.34 and 75.78.
75.78 has acted as support twice now.
Bullish Stocks: NFLX, GS, RCPT GD, UHS, GILD, AET, DIS, NKE, SPLK, EXPE,? SBUX and FEYE
Bearish Stocks: PCLN, MON, WDC, SNDK, CAR and KLAC