While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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
RRC Long at $11.85
Total Premium Collected $0.70
RRC Long at $9.20
RIG Long at $8.81
Premium Collected - $1.45
FEYE Long at $17.18
Total Premium Collected $1.06
ET Long at $11.78
Premium Collected $0.35
DBX Long at $19.70
Premium Collected $0.75
Short May 1st - $20.50 Call @ $0.50
ET Long at $7.50
Premium Collected $0.60
AGNC Long at $13.19
Premium Collected $1.45
MFA Long at $4.20
Premium Collected $0.40
KEY Long at $10.72
Premium Collected $.32
KEY Short April 24th - $11 call @ $0.32
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KEY ended up closing at 10.90, after getting as high as 11.06. This means the calls should not have been assigned and you book the profit on the $11 call that expired.
I will most likely suggest another round of calls this week. Look for an alert.
Friday the S & P 500 ended up closing 38.94 points higher on the day. For the day, the
S & P closed at 2,836.74.
And with the close percentage at 7% on Thursday, the expectation was that the low would be violated before the high. And that is what happened.
Friday's low stopped at 2,791.76 or about 3 points below Thursday's low of 2,794.26.
From the low, the market rallied all day to a high of 2,842.71.
This put the market about 30 points above the major 2,812.50 level. This was the level we were looking to be tested. And the market managed to move above it and close above it.
This now suggests it should be a level of support.
For the week, the S & P ended up closing 37.82 points lower. And the weekly bar ended up being an inside bar.
An inside bar is a contraction. The weekly range ended up being 141.88 points.
This was 77% of the weekly average true range.
I had mentioned on Friday that is was quite possible, the market would form an inside bar and that is what happened.
Support from the weekly price bar should be around 2,800. The close of 2,836.74 should also be a support level.
Support from the daily price bar is in the 2,817 area.
We still need to mindful of the overhead resistance.
The key area to monitor is the midband on the daily chart, which is 2,983. The other level to watch is the 61.8% retracement level of the down move, which is 2,934.
Pre open, the S & P is trading about 27 points higher.
This would project to an open around 2,863 or about 21 points above Friday's high.
Watch for support at the high, which was 2,842.71 and the close of 2,836.74 on a pullback.
This week we see earnings from a number of the major companies.
Tomorrow after the close, we hear from GOOGL.
After the close on Wednesday, we get earnings from FB, MSFT, TSLA, and MCD.
And Thursday we hear from AMZN and AAPL.
Here are the Key Levels for the Markets:
$VIX:
Major level: 46.88
Minor level: 46.10
Minor level: 44.53
Major level: 43.75
Minor level: 42.97
Minor level: 41.40
Major level: 40.62
Minor level: 39.84
Minor level: 38.28
Major level: 37.50
Minor level: 36.72 **
Minor level: 35.16
Major level: 34.38
Minor level: 33.60
Minor level: 32.03
The VIX closed at 35.93. The VIX closed 5.45 points lower for the day.
With a close under the minor 36.72 level today, the VIX should drop to 34.38.
The 40 should be a resistance level. And technical support is around 34.
S & P 500:
Minor level: 3,007.85
Major level: 2,968.80
Minor level: 2,929.75
Minor level: 2,851.65 **
Major level: 2,812.50 <
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30
Minor level: 2,617.25
Minor level: 2,539.06
Major level: 2,500.00
Minor level: 2,460.95
Minor level: 2,382.85
Major level: 2,304.75
Minor level: 2,226.65
The S & P closed at 2,836.74. At this point, support should be at 2,812.50. And if the
S & P can close above 2,851.65 for two days, the target should be to 2,968.80.
Technical support should be around 2,822. And resistance is around 2,900.
QQQ:
Major level: 218.75
Minor level: 217.19
Minor level: 214.06 **
Major level: 212.50 <
Minor level: 210.93
Minor level: 207.81
Major level: 206.25
Minor level: 204.69
Minor level: 201.56
Major level: 200.00
Minor level: 198.44
The QQQ closed at 213.84. This put the QQQ back above the major 212.50 level. This level should now be support.
At this point, the key level is 214.06. Two closes above this level and the QQQ should test 218.75.
The 211.55 area is a key technical level. This level should now be support on a pullback.
IWM:
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
Minor level: 154.69
Minor level: 151.56 **
Major level: 150.00 <
Minor level: 148.44 **
Minor level: 145.31
Major level: 143.75
The IWM closed at 121.41. The IWM did cross into an uptrend on its 60 minute chart.
And the IWM took out the midband. The midband is 116.53 and should be support on a pullback.
Support should be around the 120.00 area.
TLT:
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
Minor level: 157.03
Major level: 156.25
Minor level: 155.48
Minor level: 153.91
Major level: 153.13
Minor level: 152.35
The TLT closed at 170.84. The TLT is trading right at the upper band on its daily chart, which is 171.24.
Watch this level today. To move higher, the TLT needs to move above the upper band. If it can't, look for lower prices.
This tells us the TLT is overbought and that the upper band will be retested after it closed back inside it.
Support should be around 170. And 173 should be resistance.
GLD:
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
Minor level: 157.03
Major level: 156.25
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
The GLD closed at 162.64. The GLD closed for the second day above the major 162.50 level.
And is approaching the upper band, which is 166.
The next level to watch is 163.28. Two closes above this level and the GLD should test 165.63.
160 should be support and resistance is at 165.
XLE:
Major level: 56.25
Minor level: 55.47
Minor level: 53.90
Major level: 53.12
Minor level: 52.34
Minor level: 50.78
Major level: 50.00
Minor level: 49.22
Minor level: 47.65
Major level: 46.88
Minor level: 46.09 **
Minor level: 44.53
Major level: 43.75
The XLE closed at 34.62. Watch the lower band.
The lower band is 28.69 and should now be support.
33 should be support and resistance is at 36.
AAPL:
Major level: 312.50
Minor level: 309.38
Minor level: 303.13
Major level: 300.00
Minor level: 296.88
Minor level: 290.63
Major level: 287.50
Minor level: 284.38
Minor level: 278.13 **
Major level: 275.00 <
Minor level: 271.88
Minor level: 265.63
Major level: 262.50
Apple closed at 282.97. The 275 level should be support.
A close today above 278.13 and Apple should test the 287.50 level.
Apple has crossed into an uptrend on the 60 minute chart. And the 278 area should be technical support.
Minor resistance is around 290.
WATCH LIST:
Bullish Stocks: GOOGL, SHOP, REGN, DPZ, DXCM, NOW, BDX, WST, ADSK, KLAC, LLY, ZM, RH, SMG, DOCU, BMRN, SWKS, ETN, PZZA, CRUS, AMA, AZN
Bearish Stocks: CB, AJG, NWE, WWD, BLKB, SCI, LUV, SHOO, CAL
