November 19, 2015
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.
Current Positions
GOGO Long at $19.93
Premium collected - $1.25
NCR Long Jan 16 $27 Call
Net Debit - $.80
X Long at $14
Premium collected - $.89
ASNA Long at $14.20
Total Premium collected - $.75
Short Nov $14 Call - $.45 collected
ETE Long at $19.50
Short Nov $20 call - $.60 collected
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The biggest mover off of yesterday's release of the Fed meeting notes was the VIX.? It spiked up to a high of 18.98, or 25 cents above the 18.75 resistance level just before the announcement.
Then it came crashing down to close at 16.85, or 34 cents under the 17.19 resistance level.
This becomes significant because if the VIX closes today under 17.19, I would expect a retest of 12.50.
Of course, as the VIX headed south, the markets continued up.? The S & P is only 11 points from recapturing the bearish candle from last week.
Last week's high was 2,096 and the S & P closed at 2,083.58 yesterday.? A close above the 2,096 level would be bullish.
Here are the key levels for the markets.
?
VIX:?
Major level - 25.00
Minor level - 23.44
Minor level - 20.31
Major level - 18.75
Minor level - 17.19 *
Minor level - 14.06
Major level - 12.50
A close today under 17.19 and the VIX should try and retest 12.50.
Look for 18.75 and 20.31 to be resistance.
S & P 500 Cash Index:?
Minor level - 2,101.62
Major level - 2,093.80
Minor level - 2,085.98
Minor level - 2,070.33 *
Major level - 2,062.50
Minor level - 2,054.68
Minor level - 2,039.12
Major level - 2,031.30
A close today above 2,070.33 and the active objective becomes 2,093.80.
The 2,101 level will most likely act as resistance the first time up there.
Nasd 100 (QQQ):?
Major level - 115.63
Minor level - 114.85
Minor level - 113.28 *
Major level - 112.50
Minor level - 111.72 *
Minor level - 110.16
Major level - 109.38
Minor level - 108.60
Minor level - 107.03
A close today above 113.28 and the objective becomes 115.63.
Lower levels should act as support.
TLT:?
Major level - 125
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 - 117.97
Minor level - 116.40
Major level - 115.62
Objective should still be back to 121.88.
GLD:
Major level - 106.25
Minor level - 105.46
Minor level - 103.91
Major level - 103.13
Minor level - 102.34
Major level - 96.88
The objective should be down to 96.88.
Still a? market to avoid.
XLE:
Minor level - 75.78
Major level - 75.00
Minor level - 72.66
Major level - 71.88
Minor level - 69.53
Major level - 68.75
Minor level - 67.97
Minor level - 66.41 *
Major level - 65.63
XLE is within 12 cents of the 68.75 objective.
Next objective would be to 71.88.
Apple:
Major levels for Apple are 125, 118.75, 112.50, 106.25, 100, and 93.75.
106 should be a major support level for Apple.?
Almost to the 118.75 level after an upgrade yesterday.
Look to buy at support levels, with 114.06 the most logical.
Watch list:
Bullish Stocks: EW, RTN, VMC, DHR, TAP, CBOE, QIHU, TSS, V, GE, XRS, OMI, PSX, ADBE
Bearish Stocks: CMG, PVH, CMI, JACK, TIF, CHRW, AKAM, VRX, DDS, TGT, YUM, APC, LSTR, WDC
Be sure to check earnings release dates.