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 - $3.47
Short July 26th - $14.50 Call @ $0.84
RRC Long at $11.85
Total Premium Collected $0.70
RRC Long at $9.20
RIG Long at $8.81
Premium Collected - $1.45
FEYE Long at $17.18
Total Premium Collected $0.80
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There is one position that expires today and that is the short $14.50 call on SNAP. SNAP is well above the strike price and if the calls can be rolled forward with additional premium, I will suggest that.
You will receive a separate email if the numbers make sense.
Now onto the markets.
The S & P 500 sold off yesterday. For the day, the S & P was down 15.89 points. It closed out the day at 3,003.67. And the range for the day was almost the daily average true range, which is 21.87. The actual daily range was 19.07.
And for the day, the S & P closed at only 34% of the daily bar. This does suggest that yesterday's low should be taken out before the high.
In looking at how this week's weekly price bar is shaping up, we see that it has made a new high and a higher low. And the weekly range so far is 43 points.
The weekly average true range is now 68 points, so the week is shaping up as a contraction. Unless, of course, today moves around 25 points.
The midpoint of this week's weekly bar is 2,998, which is also right at the support level from last week's weekly bar. Watch this level if the market does pullback.
The support area from yesterday's daily bar is in the 3,007 to 3,010 area.
By closing above the 2,995 to 2,997 area, I would expect strong suppport at this area if the market does have a pullback.
Pre open the S & P is trading about 9 points higher. The projected open should put the market about 4 points under yesterday's high. If the S & P can clear the high of 3,016.31, I would expect support there as well.
There have been some massive off earnings. Yesterday, ALGN dropped $74.26. It was a drop of 26.99%.
And TSLA dropped $36.06 or 13.61%.
And it looks like GOOGL will pop about $90 off their earnings from last night.
Here are the Key Levels for the Markets:
$VIX:
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
Minor level: 14.85 **
Minor level: 13.28
Major level: 12.50 <
Minor level: 11.72
The VIX closed at 12.74 yesterday. The VIX bounced from being under the 12.50 level.
At this point, the 13.28 level should be resistance. And the VIX will need two closes above 13.28 to move higher.
This now puts us on alert that a bounce is possible. But, at this point 12.50 should be resistance.
To move lower, the VIX will need to move under 12.11.
SPX:
Minor level: 3,164.08
Major level: 3,125.00 <
Minor level: 3,085.95
Minor level: 3,007.85 ***
Major level: 2,968.80
Minor level: 2,929.73 **
Minor level: 2,851.58
Major level: 2,812.50
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30
Minor support is still at 2,993.20. And there is a resistance level at 3,017.60. If the S & P clears this level, look for a move up to 3,042.
Getting overbought short term. But technical support is at 2,995.
Bias is still to the upside.
QQQ:
Major level: 196.88
Minor level: 196.10
Minor level: 194.53
Major level: 193.75 <
Minor level: 192.19 **
Minor level: 189.06
Major level: 187.50
Minor level: 185.94
Minor level: 182.81
Major level: 181.25
Minor level: 179.69
The QQQ closed at 193.30. The QQQ will need two closes above 194.53 to move up to 196.88.
192.97 is a minor support level. And yesterday's low stopped 4 cents above it. Look for this level to continue to be support. But, a break under, it would suggest the QQQ should head lower.
194.53 is minor resistance on the upside.
IWM:
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
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
The IWM closed at 155.36. Yesterday ended up with an inside day. This does suggest that the high from the strong daily bar on Wednesday should be violated.
And the IWM is still above the midband, which is 153.88. This level should be support at this point. So, a violation to the downside would suggest more selling pressure.
154.69 should be support.
TLT:
Major level: 134.38
Minor level: 133.60
Minor level: 132.03
Major level: 131.25
Minor level: 130.47 **
Minor level: 128.91
Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
The TLT closed at 131.16. To head lower, the TLT will need two closes under 130.47. And to move higher, two closes above 132.03.
131.25 should be support. And if the TLT can clear 132.25, it should continue higher.
GLD:
Major level: 137.50
Minor level: 136.72
Minor level: 135.16 **
Major level: 134.48 <
Minor level: 133.60
Minor level: 132.03
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.74
Minor level: 126.95
The GLD closed at 133.42. A close today under 133.60 and the GLD should continue down to 131.
134.38 should offer resistance. Watch the minor 133.59 level today. This should offer resistance as well.
XLE:
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
Minor level: 58.60
Minor level: 57.03
Major level: 56.25
The XLE closed at 62.77. The XLE sold off 0.72 yesterday.
62.50 should offer support. And minor resistance is at 63.28.
AAPL:
Major level: 212.50
Minor level: 209.38
Minor level: 203.13 **
Major level: 200.00 <
Minor level: 196.88
Minor level: 190.63
Major level: 187.50
Minor level: 184.38
Minor level: 178.13
Major level: 175.00
Apple closed at 207.02. The objective continues to be up to 212.50.
206.25 should offer support. So, if it is violated, it should head lower.
The 206.40 should offer technical support.
WATCH LIST:
Bullish Stocks: ULTA, SHOP, AVGO, COST, PANW, MCD, LRCX, OLED, EW, VMW, CLX, ITW, IBM, HSY, KLAC, XLNX, YUM
Bearish Stocks: DPZ, LLY, EA, WTFC, NDC, IBKR, THC, VST, CC, PXD
Be sure to check earnings release dates.
