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 - $2.79
AMC Long at $15.27
Premium Collected - $0.98
Short Nov $15 call @ (0.55)
THC Long at $14.63
Premium Collected - $1.95
Short Nov 24th - $14.50 call @ ($0.35)
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Once again, the S & P 500 managed to claw back and close above the major 2,578.10 level. Just as it seems that the market will have a deep pullback, it finds support and climbs back to close above the major level.
After gapping down, the S & P 500 found support at 2,566.56, which was just under the minor 2,568.40 level and rallied back to close above the major 2,578.10 level.
As I mentioned yesterday, you want to watch the VIX and time the long entry when the VIX reverses and starts to head down. I felt that the VIX would retest 12.50.
And it did.
The VIX ran up to a high of 12.61 before selling off to close at 11.59. As the VIX heads down, the markets should rally.
Support from yesterday's price bar should be in the 2,573 area.
Pre open, the S & P 500 is trading to the downside about 10 points. It should open around 2,568. 2,564 should be support from the 200 ema on the 60 minute chart. If this level gets violated, look for the S & P to drop further.
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 tested the 12.50 level, as expected, with a high of 12.61. Look for the VIX to pop this morning after the close. If it gets through 13.28, it should continue higher.
10.94 should now be support. And 13.28 should offer resistance.
$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: 2,484.3
The S & P 500 closed again just above the major 2,578.10 level.
To move higher, the S & P 500 will need two closes above 2,597.65 and to move lower, two closes under 2,558.58.
Watch for support at 2,568.40. Watch this level today. If the S & P breaks under this level, it could test 2,550.
QQQ:
Major level: 156.25
Minor level: 155.47
Minor level: 153.91 **
Major level: 153.13 < Hit
Minor level: 152.35
Minor level: 150.78
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
The QQQ closed at 153.31, just above the 153.13 level. To move lower, the QQQ will need two close under 152.35.
152.34 should offer support. And minor resistance is at 153.91.
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 146.21. Once again, the IWM closed just under the major 146.88 level.
146.09 is the level to watch today. It should open under this level and I would expect it to offer resistance. A retest of 143.75 would be likely in that scenario.
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 closed at 125.20, closing above the 125 level.
Closing above 125 indicates the TLT should head higher. And two closes above 125.78 would confirm this.
Minor support is at 124.61.
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 121.56. Watch the 121.88 level. If the GLD gets through 121.88, it should head higher.
At this point, 125 should be resistance.
XLE:
Major level: 73.44
Minor level: 72.66
Minor level: 71.09
Major level: 70.31
Minor level: 69.92
Minor level: 69.14 **
Major level: 68.75 <
Minor level: 68.36
Minor level: 67.58
Major level: 67.19
The XLE took out the 68.75 level, closing at 68.14. The XLE is just above the mid band on the daily chart, which is 67.82.
A break under this level and the XLE should head lower. 67.19 should be a short term support level.
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 84.65. Watch the 84.77 level. If the FXY can close above this level for two days, it should head up to 85.94. However, the FXY is struggling to close above it.
84.47 is minor support. 84.96 is minor resistance.
AAPL:
Major levels for Apple are 175, 171.88, 165.63, 162.50, 159.38, and 156.25.
Yesterday, Apple closed at 171.34, just under the 171.88 level.
Minor support should be at 165.63 and 171.88 is minor resistance.
WATCH LIST:
Bullish Stocks: AMZN, NTES, ALGN, NVDA, AAPL, WYNN, MA, RCL, VMW, V, CRM, WDC, D, SPLK, LULU, FSLR, NKE, WGO
Bearish Stocks: AGN, WHR, UHS, UHS, TSRO, SRCL, ALK, PZZA, DVA, DAL, ALKS
Be sure to check earnings release dates.
