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
AMC Long at $15.27
Premium Collected - $2.25
UNIT Long at $17.00
Premium Collected - $0.35
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Friday, the market broke out and closed 43.34 points to the upside. It closed at 2,747.30. The S & P 500 managed to close back above the 2,734.40 level.
Support for the market should be at the minor 2,714.88 level.
Even with the move up on Friday, for the week, the S & P 500 managed to form a double inside bar formation.
This set up consists of two consecutive inside bars. And after this type of formation, it is not unusual to see a range expansion.
The support levels from last week's weekly price bar should be the close, which is 2,747.30. The midpoint, which was 2,722 should also offer support on a pullback.
From Friday's daily bar, support should be in the 2,731 area.
The shorter term charts for the S & P 500 still remain in downtrends, However, price has cleared the midband on both the 30 minute chart.
That price level is 2,728.33 and should now offer support.
On the 60 minute chart, the midband is 2,752.94. Pre open, the S & P 500 is trading almost 9 points to the upside. This would indicate an open around 2,756, or about 3 points above the midband on the 30 minute chart.
If this holds up through the open, and price can clear the midband, look for it to act as support.
Here are the Key Levels for the Markets:
$VIX:
Major level: 31.25
Minor level: 29.69
Minor level: 26.56
Major level: 25.00
Minor level: 23.44
Minor level: 20.31
Major level: 18.75 <
Minor level: 17.19 **
Minor level: 14.06
Major level: 12.50
Minor level: 10.94
The VIX closed at 16.49. The VIX closed almost 12% to the downside. A close today under 17.19 would imply a drop to 12.50.
18.75 should offer resistance. 15.63 is a minor support level. A break under 15.63 and the VIX should head lower.
$SPX:
Major level: 2,812.50
Minor level: 2,792.98
Minor level: 2,753.93 **
Major level: 2,734.40 <
Minor level: 2,714.88
Minor level: 2,675.83
Major level: 2,656.30
Minor level: 2,636.75
2,744.10 is a minor support level. Look for this level to hold as support. And 2,695.30 continues to be a major support level.
The next minor level on the upside is 2,753.93. Two closes above 2,753.93 and the S & P 500 should test 2,812.50.
QQQ:
Major level: 175.00
Minor level: 173.44
Minor level: 170.31
Major level: 168.75 <
Minor level: 167.19 **
Minor level: 164.06
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25
The QQQ closed at 168.17. The QQQ is back to within should 58 cents of the 168.75 level.
167.19 should be minor support. The 30 minute chart has crossed into an uptrend, which implies higher highs to follow.
IWM:
Minor level: 157.03
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 153.98. 151.56 should continue to act as support.
To move higher, the IWM needs to close above 153.91 today. If it can, the objective now becomes 156.25.
TLT:
Minor level: 120.70
Major level: 120.31
Minor level: 119.92
Minor level: 119.14
Major level: 118.75
Minor level: 118.36
Minor level: 117.58
Major level: 117.19
Minor level: 116.80 **
Minor level: 116.02
Major level: 115.63
The TLT closed at 118.13. The TLT is bouncing from it's oversold condition.
118.75 should offer resistance on the TLT. If it bounces to 118.75 and heads down, it could drop to as low as 113.
GLD:
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.35
Minor level: 125.78 **
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
The GLD closed at 126.14. I would expect a test 128.13. However, 126.56 is a minor resistance level that the GLD will need to clear before heading higher.
125 should be strong support. A break under this level tells us the GLD should head lower. And if the GLD can clear 128.13, I would expect it to head higher.
XLE:
Minor level: 76.95
Major level: 76.56
Minor level: 76.17
Minor level: 75.39
Major level: 75.00
Minor level: 74.22
Minor level: 72.66
Major level: 71.88
Minor level: 71.10
Minor level: 69.53 **
Major level: 68.75 <
Minor level: 67.97
Minor level: 66.41
Major level: 65.63
The XLE closed at 68.80. It closed just above the midband, which is 67.23. Watch to see if the midband holds.
67.97 should be a minor offer level.
FXY:
Major level: 91.41
Minor level: 91.22
Minor level: 90.83
Major level: 89.06 <
Minor level: 88.87
Minor level: 88.48
Major level: 88.28
Minor level: 88.09
Minor level: 87.70
Major level: 87.50
Minor level: 87.31
Minor level: 86.92
The FXY closed at 89.72. It is testing the upper band, which is 89.77. If it can't clear the upper band, expect a pullback.
88.28 should offer support.
AAPL:
Major level: 178.13
Minor level: 177.35
Minor level: 175.78 **
Major level: 175.00
Minor level: 174.22
Minor level: 172.66
Major level: 171.88
Minor level: 171.10
Minor level: 169.53
Major level: 168.75
Apple closed at 175.50, closing above the 175 level. At this point, 171.88 should continue to offer support.
The 172.50 area should continue to offer support.
WATCH LIST:
Bullish Stocks: AMZN, BA, LLL, ADBE, CTAS, PANW, FFIV, RHT, JPM, CRM, GPN, ZTS, SFLY, CTSH, PTC, MSFT,
Bearish Stocks: REGN, MLM, AGN, ZBH, KMB, DGX, HSY, CL, KHC, MMP, PZZA, HCN, TUP
Be sure to check earnings release dates.
