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
Total Premium Collected $1.95
ASNA Long at $14.20
Total Premium Collected $0.75
DUST Long $4.50
Total Premium Collected $0.70
DYN Long at $12.55
Premium Collected $0.48
APA Long Oct $47.50 Call at $3.45
FEYE Long at $14.39
FEYE Short Sept 1st $14.50 Call at $0.23
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Yesterday continued with narrow range trading. For the day, the S & P 500 closed 1.19 points to the upside, at 2,444.24.
The range for the day was 10.09 points, as compared to the average true range of 15.52.
For the last four days, the minor 2,445.30 level has been tested. And during these four days, the S & P 500 could not close above it.
And yesterday there was a divergence between the VIX and the S & P 500. They both closed to the upside.
This usually indicates a change of direction is forthcoming.
And this morning, the S & P 500 is trading to the downside 12 points. Based on this pre market activity, the market should open around 2,432.
The weekly support area of 2,436 to 2,439 should now be resistance, with a close under that area.
The points of support below the current market price include the open gap at 2,430.
If that does not hold, I would expect a retest of the lower band on the 30 minute chart. The lower band is now 2,413. The question is this ... will the lower band hold as support or will the S & P 500 break under it again.
A violation of that band would tell us to expect another retest after a bounce in the market.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.84
Minor level: 13.28
Major level: 12.50
Minor level: 11.72
Minor level: 10.16 **
Major level: 9.38 <
With the pre market activity indicating a bearish open, the VIX should open to the upside. The key will be the 12.50 level. If the VIX clears 12.50, it should head higher. The minor 13.28 and 14.06 levels would be the objectives.
The market should reverse to the upside when the VIX reverses to the downside.
For the VIX to head higher above the 12.50 level, it will need two closes above the 13.28 level.
$SPX:
Major level: 2,500.00
Minor level: 2,484.38
Minor level: 2,453.12 **
Major level: 2,437.50 <
Minor level: 2,421.88 **
Minor level: 2,390.62
Major level: 2,375.00
Minor level: 2,359.38
Minor level: 2,328.12
Major level: 2,312.50
On the downside, the minor 2,429.70 level should be tested. Two closes under this minor level and the S & P 500 should test 2,406.
Strong support should be at 2,375. And with an open under 2,437.50, it should act as resistance on a retest.
QQQ:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75 <
Minor level: 142.18 **
Minor level: 139.06
Major level: 137.50
Minor level: 135.94
Minor level: 132.81
140.63 should offer support. And 143.75 could offer resistance.
The lower band is 140.26. Watch to see if the QQQ can hold above this level.
IWM:
Minor level: 144.53
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: 135.15 <
Major level: 134.37
The IWM did hit the 137.50 level. 137.50 should be resistance.
A break under 135.94 and the IWM could drop to 131.
TLT:
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
Minor level: 124.61
Minor level: 123.83
The TLT closed at 127.24 yesterday. The objective should be to 128.13.
126.56 should still be minor support. 127.73 could offer minor resistance.
Continue to buy against support.
GLD:
Major level: 125.00
Minor level: 124.22
Minor level: 122.66 **
Major level: 121.88 <<
Minor level: 120.32
Minor level: 119.53
Major level: 118.75
Minor level: 117.97
The GLD is close to the major 125 level. The high yesterday was 124.73.
Also, the GLD has crossed into an uptrend on its daily chart.
123.44 should be minor support. And 124.22 as well.
XLE:
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 continues to try and hold the major 62.50 level. If this level is violated, I believe the XLE could drop to as los as 48.
On the upside, 62.89 is a minor level that the XLE needs to clear. If it can, it could run to 64.06.
FXY:
Major level: 89.06
Minor level: 88.67
Minor level: 87.89 ***
Major level: 87.50 <
Minor level: 87.11
Minor level: 86.33
Major level: 85.94
Minor level: 85.55
Minor level: 84.77
Major level: 84.38
The FXY is holding above the major 87.50 level. The next minor level is 88.28. IF the FXY can clear 88.28, it could run up to 90.
Support is at 87.50 and 87.79.
AAPL:
Major levels for Apple are 162.50, 159.38, 156.25, 153.13, and 150.
Apple is close to the 162.50 major level. The high yesterday was 162.
160.16 should be minor support. And 164.06 is minor resistance.
WATCH LIST:
Bullish Stocks: NOC, HUM, ANTM, LLL, RTN, BABA, AAPL, MCD, SBAC, ADBE, AMT, BLUE, CRM, CNC, SPLK, AABA, ATVI, WERN
Bearish Stocks: ULTA, GWW, FLT, AGU, VRSK, OMC, AKAM, CAKE, SAVE< OTEX, STX, BGS, OMI
Be sure to check earnings release dates.
