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
................................................................................
Before I begin, I do want to mention that I suggested you close the CB debit spread. The return for two days worked out to 52%.
Today closes out the month of April. After the March sell-off, the S & P 500 through yesterday is up 13.73% for the month.
As I mentioned in yesterday's webinar, the monthly price bar is forming an inside bar on the monthly chart. Assuming the month closes with this formation, this would suggest we will see more volatility.
The QQQ and the NASD Composite are forming bullish engulfments on their monthly charts. This formation is one of the stronger candle formations and quite frankly, it is remarkable to see this after the sell-off and contango the US is in as a result of the pandemic.
Could the market be anticipating that a cure for Covid 19 is around the corner?
There have been positive test results from a few companies working on cures.
The S & P closed 76.12 points higher yesterday. The market closed at 2,939.51. The close put the S & P above the 61.8% retracement level of the down move, which is 2,934.49.
Yesterday's high of 2,954.86 also put the S & P within 30 points of the midband on the daily chart. The midband is 2,983. Clearing this level would be bullish. But, it is resistance until that happens.
Support from yesterday's daily bar is in the 2,929 to 2,922 area.
FB reported and is trading about $13 higher. TSLA is trading about $56 higher after reporting.
This afternoon, we get earnings from AMZN and AAPL.
Here are the Key Levels for the Markets:
$VIX:
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
Major level: 31.25 <
Minor level: 30.47
The VIX closed at 31.23. The VIX closed 2.34 points lower for the day.
The VIX hit the 31.25 objective we were looking for.
At this point, watch the minor 32.03 and 30.47 level to see where the next minor move is.
Technical resistance is around 35.
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 2,939.51. The target should still be to the major 2,968.80 level.
The minor 2,929.75 level should offer support.
The 2,898 should be a technical support level.
Resistance is around 2,990
QQQ:
Minor level: 220.31
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
The QQQ closed at 219. This put the QQQ 25 cents above the major 218.75 level.
The next minor level on the upside is 220.31. The QQQ will need to close above this level to move higher.
The 214 area should now be support. And the 217 area should be support from yesterday's daily bar.
IWM:
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
Minor level: 142.19
Minor level: 139.06
Major level: 137.50 <
Minor level: 135.94
Minor level: 132.81 **
Major level: 131.25
Minor level: 129.69
Minor level: 126.56
The IWM closed at 135.46. At this point, support should be at the minor 132.81 level. And the IWM should move up to 137.50.
Support should be around the 129.00 area. And techncial resistance is at 138.
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 168.71. The TLT closed .88 points lower. The TLT is just under the upper band on the daily chart. The upper band is now 172.32.
Minor resistance is at 170. The TLT will need to clear this level to head higher. And if it does, it would then be support.
Support should be around 166.
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 161.73. At this point, the GLD will need to clear 161.72 to move higher. From yesterday. And the GLD managed to close one cent above it.
162.50 should be resistance. And technical resistance is at 164.
158 should be support.
XLE:
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
Minor level: 42.97
Minor level: 41.41
Major level: 40.63
Minor level: 39.83
Minor level: 38.28
The XLE closed at 38.86. A close today above 38.28 and the XLE should test 40.63.
Technical support should be around 36. And resistance at the 40 level.
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 287.73. Apple closed 23 cents above the major 287.50 level we were looking for.
Apple does report earnings today after the close.
Apple has crossed into an uptrend on the 60 minute chart. And the 273 area should be technical support.
Minor resistance is around 293.
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
