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
SNAP Long at $14.54
Total Premium Collected - $1.65
RRC Long at $11.85
Total Premium Collected $0.70
RIG Long at $8.81
Premium Collected - $1.45
FEYE Long at $17.18
Total Premium Collected $0.80
CLW Long May - $20.00 call for $2.00
AMC Long at $16.16
Total Premium Collected $0.35
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Friday I suggested you close two positions. I suggested buying back the short $9.50 call on RIG. This brings the call premium collected on this position to $1.45 per share. But, it also frees the position up to sell more calls on the bounce.
I also suggested closing the debit spread on CNC. The profit worked out to about 50% in three days.
The S & P 500 made a push higher out the small range it had been in for the prior two days. It ended Friday closing at 2,939.88, up 13.71 for the day.
This puts the market back to within 30 points of the major objective that we are tracking.
Just Friday, I mentioned the down to up volume as the market was taking a breather and if it was possible, we would see a turn to the downside.
And I suggested that we would need to see a day that registered over 2.50 down to up volume to suggest we would turn. And at that point, we had not had a day with a reading of that level or higher.
And as it turned out, Friday's reading was back to under 0.50. The reading for the day was 0.40.
So, in essence, the down to volume suggested the markets should head higher and they did.
The question will be if the S & P 500 can clear the next major objective of 2,968.80.
This was the level the market failed at on its first attempt to clear it back in September last year.
You know what happened to the market after that failure, so it does not bear repeating.
Clearing this level to me would be a significant event. Just like failing to clear it would as well.
For the day, the S & P 500 closed at 100% of its daily price bar. This does that the high for Friday will be violated before the low.
And the support area from Friday's daily bar is in the 2,928 to 2,933 area.
For the week, the S & P 500 closed 34.85 points higher. Just like Friday's daily bar, the weekly bar closed at 100% of its range.
The support area from last weeks weekly price bar is in the 2,918 to 2,919 area.
Pre open, the S & P 500 is down slightly.
Earnings do continue this week. The most notable reports will come from Google this afternoon and Apple tomorrow afternoon.
Here are the Key Levels for the Markets:
$VIX:
Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.85
Minor level: 13.28 **
Major level: 12.50 <
Minor level: 11.72 **
Minor level: 10.16
Major level: 9.38
The VIX closed out Friday at 12.65. The VIX did get to a high of 13.65 before closing under the 13.28 level. And it closed only 15 cents above the major 12.50 level.
The 13.28 level once again offered resistance as we expected.
Watch to see if the VIX can break under 12.50. If it does, I would expect the VIX to head lower.
12.89 should be minor resistance.
SPX:
Major level: 2,968.80
Minor level: 2,849.25
Minor level: 2,910.15 **
Major level: 2,890.60
Minor level: 2,871.08
Minor level: 2,832.03
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
The upside objective is still to 2,968.80. And at this point, the minor 2,910.15 level should offer support.
And there is minor resistance at 2,954.10. And minor support is at 2,929.70.
Short term charts remain firmly bullish.
Continue to buy against support. Technical support is around 2,920.
QQQ:
Major level: 193.75
Minor level: 192.19
Minor level: 189.06 **
Major level: 187.50
Minor level: 185.94
Minor level: 182.81
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
The QQQ closed out yesterday at 190.65. The next objective for the QQQ should be to 193.75.
189.06 should be short term support. And 189.84 is minor support as well.
Technical support is around 189.
Like the S & P 500, both short term charts are bullish. And like the S & P 500, the QQQ is very close to crossing into an uptrend on its daily chart.
Continue to buy against support.
IWM:
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 < HIT!
Minor level: 154.69 **
Minor level: 151.56
Major level: 150.00
Minor level: 148.44
The IWM closed at 158.27. With a close today above 157.81, the IWM should move up to 162.50.
Friday's low was 156.40 which was 9 cents above the midband. This level should be support now. And it now reads 156.31.
Minor support is at 155.47 and 156.25.
Both short term charts are bullish. And technical support is around 156.
TLT:
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
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 TLT closed at 123.81. Still biased for a test of 125.
Minor support should now be at 123.44. And if the TLT can hold 123.83, look for it to move higher.
Short term charts are close to crossing into an uptrend.
Technical support is still at 123.
GLD:
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
Major level: 121.88
Minor level: 121.09 **
Major level: 120.31<
Minor level: 119.92
Minor level: 119.14
Major level: 118.75 <
The GLD closed at 121.37. Looking for a bounce up to 125 now, but it needs to clear resistance at 121.50. If it can't, I would expect a drop.
A break under 119.53 and the GLD should head lower.
And I would expect resistance at 121.88.
Both the 30 minute and 60 minute charts remain bearish.
Technical resistance is still around 121.70.
XLE:
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 <
Minor level: 64.85
Minor level: 63.28
Major level: 62.50
Minor level: 61.72
Minor level: 60.16
Major level: 59.38
The XLE closed at 66.11. Friday's low came to 65.64, just one cent above the level we were looking at for support.
Watch 65.63 today. If it can hold, I would expect the XLE to bounce.
Short term charts remain bullish. Technical support is at 76.
I still expect strong support at the 65.63 level.
AAPL:
Major level: 212.50
Minor level: 210.94
Minor level: 207.81
Major level: 206.25 < HIT
Minor level: 204.69
Minor level: 201.56 **
Major level: 200.00
Minor level: 198.44
Minor level: 195.31
Major level: 193.75
Minor level: 192.19
Apple closed at 204.30. Next minor level is 207.81. Two closes above 207.81 and Apple should test 212.50.
On the downside, the support level should be 204.69. And Friday closed just under it.
Short term charts remain bullish. And technical support is also around 205.
WATCH LIST:
Bullish Stocks: NOW, FLT, MA, LRCX, WDAY, VRSN, HON, CRM, V, ADP, DECK, CME, CB, DIS, WIX, MSFT, SPLK, KLAC, HSY, ADI, PYPL, TSCO
Bearish Stocks: TSLA, SPOT, CVX, PSX, RHI, WSM, WBA, BG, Z, STLD
Be sure to check earnings release dates.