While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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
Total Premium Collected $1.95
ASNA Long at $14.20
Total Premium Collected $0.75
DUST Long $4.50
Total Premium Collected $0.70
SNAP Long at $14.54
Total Premium Collected - $1.65
OI Long Feb $19 call @ $1.70
MDR Long @ $9.31
DIS Long Jan 25th $107 Call @ $3.35
DIS Long Jan 25th $107 Put @ $3.10
RRC Long at $11.85
RRC Short Jan 25th - $12.00 Call @ $0.30
FEYE Long at $16.70
FEYE Short Feb 1st - $17 Call @ $0.40
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You should have added a new position yesterday. It was a covered call on FEYE. The alert was to buy FEYE and sell next week's call against the position.
For tomorrow, there is an open short call position. That is the short $12 call on RRC. RRC is trading under the strike, so at this point it appears the calls will not be assigned. You will receive a separate email tomorrow if the position is adjusted.
And the long $107 strike calls on DIS expire tomorrow as well. You will definitely receive a separate email as to how to handle this position.
Yesterday, the S & P 500 managed to close slightly higher. It managed to close up 5.80 points at 2,638.70.
The range for the day was 40.33 points. This was short of the average daily range of 46.23. And for the day, the S & P 500 managed to close at 64% of the daily bar.
This suggests there is a slight edge for the market to take out yesterday's high before the low.
The S & P 500 will need two closes above 2,675.83 to move up to the next level which is 2,734.40.
The S & P 500 managed to hit the minor 2,675.83 level but could not close above it. This happened last Friday when the high for the day was 2,675.46. Close enough to say it was hit.
With a break above the major 2,656.30 level, this suggests that lower levels should offer support.
And at this point, the lowest the S & P 500 has been is yesterday's low of 2,612.86.
But, the S & P 500 managed to close Tuesday under 2,636.75 when it closed at 2,632.90. So that would suggest that if the market closed under that level yesterday, it would test 2,578.10.
By being able to recoup 2,636,75, it does suggest that this bounce has a bit more to go.
Likewise, we can look at the VIX for help in determining if the market should reverse.
Tuesday, the VIX closed at 20.80 which was above 19.53 level. This would have suggested that if the VIX closed above 19.53 yesterday, it should move higher. And that would suggest that the
S & P 500 would move lower.
As it turned out, yesterday's close on the VIX was 19.52. Just one cent under the 19.63 level.
I know one cent may not seem like much, but it does invalidate the move higher for the VIX.
The support area from yesterday's daily bar is in the 2,633 to 2,641 area.
The 60 minute chart for the S & P 500 is in an uptrend which does suggest that the market should continue higher. And technical support is at 2,590.
And with bias still to the upside, the question is where should the market go?
I am still biased for a test of the midband on the daily chart which is 2,736.
Continue to monitor the levels as I mentioned above.
Here are the Key Levels for the Markets:
$VIX:
Major level: 25.00
Minor level: 24.22
Minor level: 22.66
Major level: 21.88
Minor level: 21.10
Minor level: 19.53
Major level: 18.75 <
Minor level: 17.97 **
Minor level: 16.41
Major level: 15.63
As I said, the VIX closed at 19.52, one cent under the 19.53 level. This does void the upside move in the VIX in that the VIX would still need two closes above 19.53 to move higher.
But this suggests that minor resistance is at 20.31.
And support should be at 18.75.
SPX:
Major level: 2,734.40 <
Minor level: 2,714.88
Minor level: 2,675.83 **
Major level: 2,656.30 <
Minor level: 2,636.75 **
Minor level: 2,597.65
Major level: 2,578.10
Minor level: 2,558.58
Minor level: 2,519.53
Major level: 2,500.00
As it turned out, the S & P 500 did reclaim the 2,636.75 level. This level should be support. And if it does not hold, I would expect 2,578 to hold.
Watch to see if the S & P 500 can clear 2,656 today. Watch for support at yesterday's close of 2,638.70.
QQQ:
Major level: 175.00
Minor level: 173.44
Minor level: 170.31
Major level: 168.75 <
Minor level: 167.19
Minor level: 164.06 **
Major level: 162.50 <
Minor level: 160.94
Minor level: 157.81
Major level: 156.25
Minor level: 154.69
The QQQ closed at 162.15. The QQQ will still need two closes above 164.06 to move up to 168.75.
Watch to see if the QQQ can reclaim the 162.50 level. The QQQ did get above 162.50 but could not close above it.
The midband on the daily chart is 169.21 and the QQQ is approaching it.
Technical support is at 159.74.
IWM:
Major level: 156.25
Minor level: 154.69
Minor level: 151.56
Major level: 150.00 <
Minor level: 148.44
Minor level: 145.31**
Major level: 143.75
Minor level: 142.19
Minor level: 139.06
Major level: 137.50
Minor level: 135.94
Minor level: 132.81
The IWM closed at 144.60. The objective for the IWM is still to 150.
Watch so to see if the IWM can clear the minor 145.31 level today. If it can reclaim this level, it should offer support.
140.90 should be technical support for the IWM.
TLT:
Major level: 123.44
Minor level: 123.05
Minor level: 122.27
Major level: 121.88
Minor level: 121.49
Minor level: 120.70
Major level: 120.31 <
Minor level: 119.92 **
Minor level: 118.14
Major level: 118.75
Minor level: 117.97
Minor level: 116.41
Major level: 115.63
The TLT closed at 120.32. 119.92 should be support. And two closes above 120.70 and the TLT should move up to 121.88.
The TLT closed one cent above the major 120.31 level.
Watch to see if the TLT can hold the 120.31 level. If it can't, I would expect a drop to 118.75.
GLD:
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
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
The GLD closed at 121.28. The GLD will still need two closes under 121.10 to drop to 118.75.
121.88 should still be resistance. Minor support is at 120.31. A break under this level and expect the GLD to head lower.
XLE:
Major level: 71.88
Minor level: 71.10
Minor level: 69.53
Major level: 68.75
Minor level: 67.97
Minor level: 66.41
Major level: 65.63
Minor level: 64.85
Minor level: 63.28 **
Major level: 62.50
Minor level: 61.72 **
Minor level: 60.16
Major level: 59.38
The XLE closed at 61.81. This put the XLE back under the major 62.50 level. Watch to see if the XLE can reclaim this level.
And the XLE closed just above the minor 61.72 level. Two closes under 61.72 and I would expect the XLE to drop to 59.38.
Minor support is at 60.94. A close under this level and I would expect the XLE to continue lower.
FXY:
Major level: 89.84
Minor level: 89.65
Minor level: 89.26
Major level: 89.06
Minor level: 88.87
Minor level: 88.48 **
Major level: 88.28
Major level: 87.50 <
Major level: 86.72
Major level: 85.94
Minor level: 85.75
Minor level: 85.36
Major level: 85.16
Minor level: 84.97
The FXY close at 87.11. It will need two closes above 88.48 to move higher. And two closes under 86.72 and the FXY should drop.
The FXY will need to clear 87.50 to move higher.
Still biased for a move lower. A break under the midband and the FXY should continue lower. The midband is now 86.82. And the FXY is sitting right on them. A break under it and it should continue lower.
AAPL:
Minor level: 173.44
Minor level: 170.31
Major level: 168.75
Minor level: 167.19
Minor level: 164.06
Major level: 162.50 <
Minor level: 159.38
Minor level: 153.13 **
Major level: 150.00
Minor level: 146.88
Minor level: 140.63
Major level: 137.50
Apple closed yesterday at 153.92. Biased for a test of 150. A drop to 150 would be a good area to consider a long.
156.25 should be resistance. 160 is technical resistance.
WATCH LIST:
Bullish Stocks: CMG, REGN, AVGO, AMGB, VRTX, CRM, DXCM, RH, WIX, ROST, NKE, SQ, THS, CIEN, BSX
Bearish Stocks: MTN, LGND, VOD, ORAN
Be sure to check earnings release dates.