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
SNAP Long at $15.20
Premium Collected - $1.83
Short Nov 3rd - $16.50 call @ ($0.30)
AMC Long at $15.27
Premium Collected - $0.98
Short Nov $15 call @ (0.55)
THC Long at $14.63
Premium Collected - $0.80
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The month of October closed out with another bullish close. For the month, the S & P 500 closed to the upside 55.90.
I mentioned yesterday that for the market to turn bearish, the S & P 500 would have to close under the midpoint of the monthly price bar.
Going into yesterday, the midpoint was 2,551.69.
As it turned out, the S & P 500 closed at 2,575.26. The high for the month was 2,582.98 and the low was 2,520.40. So, the mid point worked out to be the 2,551.69 figure I mentioned yesterday.
And the S & P closed 23.57 points above the midpoint.
With a close at 2,575.26, it means that the S & P 500 closed at 87.7% of the range of the monthly price bar.
This high close percentage tells me that the high of October should most likely be violated before the low.
Another way to view this is that the market should continue higher.
And the market continues to trade above the upper extreme bollinger band. That level is 2,438.87. So, the S & P 500 is trading about 140 points above that level.
This continues to demonstrate how strong this market is.
On a daily basis, yesterday formed another inside day. This is the second consecutive day which formed an inside day. This becomes a double inside day.
This tells us to expect a range expansion at some point. Watch for the violation of the high or low and expect to continue in that direction on a breakout or breakdown.
With the S & P 500 trading to ths upside pre open, expect the move to continue up and yesterday's high of 2,578.29 to offer support on a retest.
This afternoon, we will get earnings from TSLA and FB.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
Major level: 12.50
Minor level: 12.11
Minor level: 11.33
Major level: 10.94 <
Minor level: 10.55
Minor level: 10.16 **
Major level: 9.38 <
Minor level: 8.99
Minor level: 8.20
Major level: 7.81
The VIX closed at 10.13, down .37 on the day. The high for the day was 10.37, just under the minor 10.55 minor resistance level.
I would still expect resistance at 10.94 and 10.55. 8.59 should offer support.
A retest of 9.38 seems likely. Same as yesterday.
$SPX:
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
Minor level: 2,484.38
Yesterday's high was 2,578.29. This was 19 cents above the major 2,578.10 level.
2,574.50 is minor suppoprt and 2,586.70 is minor resistance.
Short term momentum still remains bullish.
QQQ:
Major level: 153.13 <
Minor level: 152.35
Minor level: 150.78 ***
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
The QQQ closed at 152.15. The objective should still be to 153.13.
Minor support is at 151.56 and 150.78. Look for resistance at 154.69.
IWM:
Minor level: 150.78 **
Major level: 150.00 <
Minor level: 149.22 **
Minor level: 147.66
Major level: 146.88
Minor level: 145.32
Minor level: 144.53
Major level: 143.75
Minor level: 142.97
The IWM closed at 149.26. 148.83 should now be minor support. And 148.05 is also minor support.
TLT:
Major level: 128.13
Minor level: 127.35
Minor level: 125.78
Major level: 125.00 <
Minor level: 124.61
Minor level: 123.83 ***
Major level: 123.44
Minor level: 123.05
Minor level: 122.27
Major level: 121.88
The TLT jumped, closing at 124.46. Yesterday's high was 124.66, within 40 cents of the 125 level.
I do expest strong resistance at 125. If the TLT does break through this level, it should head higher.
GLD:
Minor level: 125.78
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
The GLD closed at 120.67. The GLD should test 118.75. At this point, 121.88 should be resistance. If 121.88 is violated, major resistance should be at 125.
Resistance is at 121.09. And minor support is at 119.92.
XLE:
Minor level: 69.14
Major level: 68.75
Minor level: 68.36
Minor level: 67.58
Major level: 67.19 <
Minor level: 66.80
Minor level: 66.02
Major level: 65.63
Minor level: 64.85
The XLE closed at 67.91. The XLE closed above the mid band, which is 67.73. This level should now be support.
67.38 is minor support. And 68.36 is minor resistance.
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 closed at 84.48. With a failure to close above 84.77 yesterday, the FXY could retest the major 84.38 level. Breaking this level tells us the FXY should continue lower.
83.59 should offer minor support. And 85.94 could offer minor resistance.
AAPL:
Major levels for Apple are 165.63, 162.50, 159.38, 156.25, 153.13, and 150.
Apple continues to bounce off the 156.25 support level, closing up again. It closed at 169.04.
This has been a strong pre earnings move. Apple reports this Thursday, after the close.
Apple should try and test 175.
WATCH LIST:
Bullish Stocks: AMZN, GOOGL, NTES, ALGN, AVGO, MMM, UNH, NVDA, NFLX, AAPL, APD, ITW, CAT, MAN, DE, DATA, MSFT
Bearish Stocks: ULTA, AYI, UHS, DPS, AAP, TAP, PZZA, WBA, TSCO
Be sure to check earnings release dates.
