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
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DUST Long $4.50
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SNAP Long at $15.20
Premium Collected - $2.79
AMC Long at $15.27
Premium Collected - $1.78
THC Long at $14.63
Short Dec $15.50 call @ $0.30
Premium Collected - $1.70
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Yesterday, the S & P 500 closed modestly to the downside. For the day, it was down .30 points. And closed at 2,629.27.
The low for the day was 2,624.75, or about 8 points above the 2,617 level.
The low was right in the middle of the weekly price bar support area of 2,622 to 2,628.
The question now is will the market find support there and start to make another run?
Obviously, you want to watch the weekly support level I mentioned above. And if the S & P breaks under that level, a move to 2,617 would be the objective.
The VIX really did not make a jump as you would expect. In fact, the VIX closed to the downside, at 11.02 yesterday.
The tried to rally to the 11.72 resistance level I mentioned yesterday, hitting a high of 11.68 before turning down.
Now we have had two consecutive days where both the S & P 500 and the VIX have closed to the downside.
As you know, this is a divergence, that warns us that a change in direction should be forthcoming.
The market maybe slow today waiting for the release of the Non Farm Payroll tomorrow at 8:30 EST.
But, we do have to respect the divergence in the S & P 500 and the VIX. This is similar to last week when they both closed to the uspide for two days.
Even with this recent sell off, both the 30 minute and 60 minute charts for the S & P 500 remain in uptrend formation.
2,616 is the midband on the 30 minute chart and within one point of the 2,617 resistance. This area should offer strong support.
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
11.72 should continue to be minor resistance. If that cannot hold, I would expect 12.50 to.
If the VIX breaks under 10.94, we just may see another retest of 9.38.
10.16 should be minor support.
$SPX:
Major level: 2,695.30
Minor level: 2,685.55
Minor level: 2,666.05
Major level: 2,656.30 <
Minor level: 2,646.53 **
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 support is at 2,624.50. And yesterday's low was just above it. Watch to see if this holds. If it can't a drop to 2,612.30 could happen.
Also, the 2,617 level should provide support.
QQQ:
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25
Minor level: 155.47
Minor level: 153.91
Major level: 153.13 <
Minor level: 152.34
Minor level: 150.78
Major level: 150.00
The QQQ closed at 153.50, closing above the major 153.13 level.
152.34 should still be support. And now 153.13 should offer support.
154.69 should now be resistance.
IWM:
Major level: 156.25
Minor level: 155.47
Minor level: 153.91
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
The IWM closed at 150.22. The low for the day took out the 150 level by 5 cents.
I am still looking for 150 to hold as support. But, if the IWM breaks under 150 and takes out 148.44, a move to 143 could happen.
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
Target of 128.13 was hit. The high for the day was 128.23.
At this point, resistance is at 128.91. And support should be at 127.34.
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 120.07. The objective should be to 118.75.
Minor support is at 119.53. And resistance should be at 120.70.
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 68.45, under the 68.75 level where I did expect support. To move higher, thhe XLE will need to reclaim this level.
On the downside, the key level is 68.36. A break under this level and the XLE could drop to 67.
FXY:
Major level: 86.72
Minor level: 86.53
Minor level: 86.14
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 85.57. A close today above 85.36 and the FXY should move up to 85.94.
And I would expect resistance at 85.94.
AAPL:
Major levels for Apple are 175, 171.88, 165.63, 162.50, 159.38, and 156.25.
Watch for support at 168.75. If Apple violates 168.75, look for a move down to 162. Yesterday's low was 168.40, before Apple recovered.
Apple managed to close just above 168.75. Watch again today to see if this holds.
WATCH LIST:
Bullish Stocks: BA, HUM, MMM, BDX, ANTM, LLL, COST, URI, HON, CME, DE, MCK, CAT, CBOE
Bearish Stocks: TAP, WIX, OTEX, OFC, MDCO, AKR, CLI, ERJ, INN
Be sure to check earnings release dates
