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 $14.54
Premium Collected - $1.65
BERY Long Sept $50.00 Call at $2.70
BERY Long Sept $47.50 Put at $1.50
APA Long July $40.00 call @ $2.10
APA Long July $40.00 put @ $1.90
SYMC Long at $20.99
SYMC Short June 8th- $21 call at $1.40
..........................................................................................
There is one position that expires today. And that is the short $21 call on SYMC. It is trading slightly above the strike price, so I will send a separate email if an adjustment is made.
The market paused a bit yesterday and closed 1.98 points to the downside. The close was 2,770.37.
But, as you know, this was above the upside level of 2,753.93, which now means that the upside objective should be to 2,812.50.
Having said that, the major negative at the moment is that the VIX is now back to its long term support level of 12.50.
And yesterday it closed 4.21% to the upside. This tells us that a pullback shoul be coming.
Support from yesterday's daily price bar is in the 2,770 to 2,773 area.
Through yesterday, the weekly price bar for the S & P 500 had a high of 2,779.90 and a low of 2,739.51. This puts the midpoint at 2,759.70. Yesterday's close was about 11 points above the projected midpoint. Pre open, the market is trading about 6 points lower, so watch to see if the S & P can hold this level.
With the short term charts bullish, trading to the longside is still the best scenario.
Continue to monitor the longer term levels for the market.
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 12.13 yesterday. The VIX is still under the major 12.50 level.
12.50 is still a resistance level. On the downside, the key level is 10.94. I don't expect a break under 10.94. But if it does, expect the VIX to 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
Minor level: 2,597.65
Major level: 2,578.10
Minor level: 2,558.58
The objective now is up to the 2,812.50 level. 2,773.40 is a minor resistance level. Watch to see if the S & P can clear this level.
On the downside, 2,749 is a support level.
Short term momemtum is bullish. Continue to buy against support.
QQQ:
Major level: 181.25
Minor level: 179.69
Minor level: 176.56
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
The QQQ closed at 174.43. Minor support is at 173.44.
Watch the next minor level on the upside, which is 176.56. This should be resistance.
Like the S & P 500, the 30 minute and 60 minute charts remain bullish. Still stronger than the S & P 500 index. Continue to buy against support.
The QQQ is trading above the upper band on its 30 minute chart, which tells us it is overbought short term.
IWM:
Major level: 168.75
Minor level: 167.97
Minor level: 166.41 **
Major level: 165.63 <
Minor level: 164.85
Minor level: 163.28
Major level: 162.50
Minor level: 161.72
Minor level: 160.16
Major level: 159.38
Minor level: 158.60
The IWM closed at 166.02. With a failure to close above 166.41, the IWM needs two closes above that level to head higher.
165.63 should offer strong support. And 162.50 should offer minor strong support.
TLT:
Minor level: 123.83
Major level: 123.44
Minor level: 121.49
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
The TLT closed at 119.89. After dropping to the 118.75 level, the TLT is bouncing. 120.31 should offer minor resistance.
119.14 should be minor support.
GLD:
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 <
Minor level: 121.49
Minor level: 120.70
Major level: 120.31
The GLD closed 122.86. Objective should be to 121.88. And resistance should be at 123.44
I am still biased for a move to the downside, but a straddle or strangle at the midband is a low risk strategy to consider at the moment. Perhaps an uneven straddle?
The GLD continues to trade just under the midband, which is 123.05.
XLE:
Major level: 81.25
Minor level: 80.47
Minor level: 78.91
Major level: 78.13
Minor level: 77.35
Minor level: 75.78
Major level: 75.00 <
Minor level: 74.22
Minor level: 72.66
The XLE closed at 77.05 on Friday. The XLE is now within 1 point of the 78.13 objective.
76.56 should offer short term support.
FXY:
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
Major level: 86.72
Minor level: 86.53
The FXY closed at 87.29. The FXY closed above the midband, which is 86.99.
87.50 should now be resistance. 87.70 should also be minor resistance.
AAPL:
Major level: 193.75 <<
Minor level: 192.97
Minor level: 191.41 **
Major level: 190.63
Minor level: 189.85
Minor level: 188.28
Major level: 187.50
Minor level: 186.72
Minor level: 185.16
Major level: 184.38
Apple closed at 193.46. The objective should still be to 193.75.
Apple is trading right at the upper band on the 30 minute chart, which does suggest it is overbought shortterm.
Also, the 30 minute chart has to crossed into an uptrend, which implies it should head higher.
WATCH LIST:
Bullish Stocks: AMZN, GOOGL, NFLX, FDX, ALGN, ADBE, LGND, CP, ODFL, ACN, CME, VRSN, KLAC, DECK, LULU, GRUB, MSFT, ADI, WIX
Bearish Stocks: CHTR, CB, JNJ, LOGM, CASY, ALL, JACK, WBA, HSIC
Be sure to check earnings release dates.