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
THC Long at $14.63
Premium Collected - $1.40
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With a short Holiday week, the S & P 500 continues to grind higher. For the week, the market closed 23.57 points higher. It closed for the week at 2,602.42.
And Friday was the first close above 2,600 for the S & P 500.
With the market closing above 2,587.88, we had an upside objective at 2,617.20. Friday's high was 2,604.21, or 13 points under that level.
On a larger timeframe, the objective should be to 2,656.
Support from last week's weekly price bar is in the 2,591 area.
I felt it was highly that the VIX would take out the 9.38 level and it did that on Friday. The low for the day was 8.56. But, the VIX did manage to rally and close at 9.65, 27 cents above the key 9.38 level.
At this point, the higher levels on the VIX should continue to act as resistance.
Support from Friday's daily price bar is in the 2,601 area.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
Major level: 14.06
Minor level: 13.67
Minor level: 12.89
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
10.94 should be resistance. To move up to 10.94, the VIX will need two closes above 10.16.
If the VIX does break the 10.94 level, I would expect strong resistance at 12.50.
The minor 8.59 support level on Friday.
$SPX:
Minor level: 2,626.98
Major level: 2,617.20 <
Minor level: 2,607.43
Minor level: 2,587.88 **
Major level: 2,578.10
Minor level: 2,568.35
Minor level: 2,548.85
Major level: 2,539.10
Minor level: 2,529.33
The objective should be up to the 2,617 level. The minor 2,588 level should offer support.
On the upside, 2,611 could offer minor resistance.
QQQ:
Major level: 162.50
Minor level: 160.94
Minor level: 157.81 **
Major level: 156.25 < Hit
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
Minor level: 152.35
Minor level: 150.78
Major level: 150.00
The QQQ closed at 156.26. The QQQ closed one cent above the 156.25 objective.
Next level on the upside is 157.81. Two closes above that level and the QQQ should run up to 162.50.
150 should now be major support. Minor support is at 155.47.
IWM:
Major level: 153.13 **
Minor level: 152.35
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
The IWM closed at 150.95. The IWM took out the 150 target. A close today above 150.78 and the IWM should test 153.13.
This now sets up a scenario where if the IWM can close above 150.78 today, the objective should be to 153.13.
150 should now be 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
The TLT closed at 126.80. The TLT is still within 1 point of the 128 objective.
126.56 should now be support. And 127.34 is minor resistance.
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 122.32. To move higher, the GLD will need two closes above 122.66.
Higher levels should be resistance. 125 should offer 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 closed at 67.88. Objective should be up to 68.75. And the XLE closed above the mid band on the daily chart. That level is 67.77. Watch to see if this holds.
67.58 should be minor support.
FXY:
Major level: 85.94
Minor level: 85.75
Minor level: 85.36
Major level: 85.16 <
Minor level: 84.96
Minor level: 84.55
Major level: 84.38
The FXY closed at 86.03. The objective should be to 85.94.
Minor support is at 85.94 and 85.55.
AAPL:
Major levels for Apple are 175, 171.88, 165.63, 162.50, 159.38, and 156.25.
Yesterday, Apple closed at 174.97. Apple retested the 175 level in 4 days.
I did stress last week that buying against short term support was the strategy.
174.22 should be support and 176.56 should be short term resistance.
WATCH LIST:
Bullish Stocks: NTES, AVGO, BA, SPY, BDX, STZ, ILMN, WYNN, ACN, DE, MA, CLX, RHT, WDAY, CBOE, LULU, VTR, CCL
Bearish Stocks: GS, MLM, AYI, TSRO, WAB, AIG, PZZA, WIX, PAG, OTEX, TBT, EPD, AR
Be sure to check earnings release dates.
