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
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
DVA Long November 15th - $57.70 call for $1.80
DVA Long November 15th - $55.00 put for $1.95
.........................................................................................
The S & P 500 had a range expansion after the contraction on Monday. As you know, this is typical. It may not happen the next day as it did yesterday, but it will eventually happen.
For the day, the S & P closed 29.53 points higher. It closed at 2,995.68.
The market opened just above Monday's high and that was the low for the day.
After the open, the market moved up to the high for the day, which was 3,003.28.
The range for the day ended up being 29.67 points. The range was actually less than the daily average true range, which is 35.53 points, but it was exactly three times the range for Monday.
And the day closed out at 74% of the daily price bar, which suggests that the odds of taking out Monday's high before the low is about three to one.
The support area from yesterday's daily bar is in the 2,985 to 2,988 area.
The S & P took out the high from last week's weekly price bar, which was 2,993.28. The S & P closed about 2 points above it.
Watch to see if the market can hold this price level.
The S & P is very close to crossing into an uptrend on its 60 minute chart. If this can happen, it would suggest this rally will continue higher.
Pre open, the S & P is trading about 6 points lower. This suggests an open around 2,989, which is just above yesterday's midpoint, which was 2,988.
Watch to see if this level holds as support.
Wednesday after the close, NFLX reports as well as IBM. URI also reports this afternoon.
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
Minor level: 14.85 **
Minor level: 13.28
Major level: 12.50
The VIX closed at 13.49 yesterday. This put the VIX within 1 point of the major 12.50 level.
The 30 minute chart has already crossed into an downtrend and the 60 minute chart is not far behind. The 16.80 area should offer strong resistance.
14.06 should be minor resistance. The VIX is getting close to its oversold level of 12.50.
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
The S & P closed at 2,995.68. At this point, the S & P will need two closes above 3,007.85 to move up to 3,125.
2,978 should be support. And 2,983 should be a support level as well.
The 2,960 area should offer technical support.
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 193.52. Yesterday's high took out the major 193.75 level. At this point, support should be at 192.19.
And the QQQ will need two closes above 194.53 to move up to 196.88.
192.58 should offer support. Both the 30 minute and 60 minute charts are in uptrends, which does suggest more movement to the upside.
Technical support should be at around 191.
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 151.39. The IWM cleared 150 level and the midband, which is the same price level.
Expect support at 150 at this point.
The next minor level on the upside is 151.56. Two closes above this level and the IWM should move up to 156.
150.78 should offer minor support.
TLT:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
Minor level: 142.97
Minor level: 141.41
Major level: 140.63
Minor level: 139.85 **
Minor level: 138.28
Major level: 137.50
Minor level: 135.84
The TLT closed at 139.75. This was the first close below 139.85, so if the TLT closes below 139.85 today, it should drop to 137.50.
The TLT continues to pull back from its overbought condition.
140.63 should now be resistance. And the 142 area should offer technical resistance.
GLD:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
Minor level: 142.97
Minor level: 141.41
Major level: 140.63 <
Minor level: 139.85 **
Minor level: 138.28
Major level: 137.50
Minor level: 136.72
Minor level: 135.16
The GLD closed at 139.61. Yesterday was the first close under 139.85. A close today under this level and the GLD should drop to 137.50.
Technical resistance should be in the 141 area. And the major 140.63 level should offer resistance.
XLE:
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
Minor level: 55.86
Minor level: 55.08
Major level: 54.69
The XLE closed at 58.10. A close today above 57.03 and the XLE should head up to 59.
But, the 59 area should be technical resistance. So, if the XLE can clear 59, it should head higher.
AAPL:
Major level: 237.50 <<
Minor level: 234.38
Minor level: 228.13
Major level: 225.00
Minor level: 221.88
Minor level: 215.63
Major level: 212.50
Minor level: 209.38
Minor level: 203.13
Major level: 200.00
Minor level: 196.88
Apple closed at 235.32. Apple continues to trade right around the 237.50 level, which was the level we were looking for.
Apple will need to clear 237.50 to head higher. Above this level is 250.
A pullback to the 224 area would be a great place to get long.
Short term charts remain bullish.
WATCH LIST:
Bullish Stocks: AAPL, HD, EW, NVDA, RNG, DE, AGN, DG, CELG, NKE, VLO, SWKS, PAYX, TER
Bearish Stocks: VRTX, JAZZ, EOG, FANG, IRBT, RCI, OXY, YELP, CLR
Be sure to check earnings release dates.
