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
UNIT Long at $17.00
Premium Collected - $0.35
VRX Long at $16.40
Premium Collected - $0.79
Short April 20th-$16.50 call @ $0.29
SNAP Long at $14.54
Short April 13th-$15 call @ $0.30
Premium Collected - $0.30
TEVA Long $18.06
Short April 27th - $18.50 call @ $0.35
Premium collected - $0.35
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You should have closed out the long call position on KMI yesterday. The return was about 40% for two weeks. I felt it was better to book profits ahead of earnings. If you waited a bit on the alert, you actually would have received a better fill. This is what happens when you sell into strength.
The S & P 500 closed at 2,706.39. It closed up for the day 28.55 points. The range for the day was only 21.29 points, but that was because the market opened with a bullish gap, once again, of 14.90 points.
If you include the gap, the daily range was 36.19 points. Even including the gap, the range was less than the average true range, which now reads 44.78 points.
The S & P has now closed above last week's high, and for the second consecutive day has closed above 2,675.83. This now puts the objective for the market at the 2,734.40 level.
The shorter term 60 minute is still in a downtrend, but price is trading above the midband, which is 2,690.25. That price level should now offer technical support on a pullback.
If the 60 minute chart can cross into an uptrend, it would indicate that higher prices should follow.
Pre open, once again, the S & P 500 is trading higher. As I write this, it is trading about 11 points to the upside. This would imply an open around 2,717. Or within 17 points of the next upside objective.
Our bi-weekly webinar is today at 12:00 EST. I hope to see you on the webinar.
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 15.25 yesterday, just under the minor 15.63 support level. The VIX should retest the 12.50 level.
14.06 is a minor support level. A break under that level will further confirm a drop to 12.50. 16.41 should be minor resistance.
$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 should now be to the 2,734.40 level.
Minor support should now be at 2,700 and 2,675.80. 2,727 should be minor resistance. Clearing this level and the S & P 500 should run to 2,734.
QQQ:
Major level: 175.00
Minor level: 171.88
Minor level: 165.63 **
Major level: 162.50 <
Minor level: 159.38
Minor level: 153.13
Major level: 150.00
Minor level: 146.88
Minor level: 140.63
Major level: 137.50
The QQQ closed at 166.10, closing above the minor 165.63 level. A close today above 165.63 puts the objective for the QQQ to 175.
Minor resistance is at 167.19. Minor support should be at 164.84.
IWM:
Major level: 159.38
Minor level: 158.60
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
The IWM closed at 157.06. The IWM cleared the 156.25, closing above the next minor level, which is 157.03. A close today above 157.03 and the objective becomes 159.38.
156.25 should be support.
Technical support is also right at the midband on the 60 minute chart, which happens to be 153.91.
TLT:
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
Minor level: 119.92
Minor level: 119.14
Major level: 118.75
Minor level: 118.36
The TLT closed at 121.27. With a second close above 120.70, the TLT should test the 121.88 level.
121.09 should now be minor support. And 120.90 should also offer minor support.
GLD:
Major level: 134.38
Minor level: 133.60
Minor level: 132.03
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
The GLD closed at 127.75. The GLD is within 50 cents of the 128.13 level, which should be resistance.
To move higher, the GLD needs to clear 128.13. To move lower, it will need to break under 127.34.
Minor support should be at 126.56.
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 72.42. To move higher, the XLE will need two closes above 72.66.
71.88 should now offer support. And minor support is at 72.27.
FXY:
Major level: 90.63
Minor level: 90.43
Minor level: 90.04
Major level: 89.84 <
Minor level: 89.65
Minor level: 89.26
Major level: 89.06
The FXY closed at 89.51. 89.45 is a minor support.
On the upside, the FXY needs to clear 89.55 to move higher.
AAPL:
Major level: 181.25
Minor level: 180.47
Minor level: 178.91 **
Major level: 178.13 <
Minor level: 177.35
Minor level: 175.78
Major level: 175.00
Minor level: 173.44
Minor level: 170.31
Major level: 168.75
Apple closed at 178.24. If Apple did take out the 178.13 target.
175 should now be major support. 176.56 should be minor support.
WATCH LIST:
Bullish Stocks: BDX, LLL, WYNN, CMI, MON, CVX, EOG, VRSK, VLO, HLF, MLNX, MPC, OXY, HP, DLB, NTAP, APC, CLR, MGA
Bearish Stocks: CMG, MLM, CB, EFX, SMG, TAP, UAL, D, CCL, TSRO, WAGE
Be sure to check earnings release dates.