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 $0.80
XLNX Long September 20th - $110 call for $4.80
XLNX Short September 20th - $115 call for $2.70
FDX Long August 23rd - $155 put for $1.30
FDX Short August 23rd - $152.50 put for $0.70
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Yesterday, I suggested a short term put debit spread on FDX. The idea on these suggestions is to risk a very little and use the front week leverage to, hopefully, our advantage.
Yesterday the market sold off 23.14 points. It closed out the day at 2,900.51. This was not unexpected, as I mentioned yesterday that another downleg is highly likely because of the fact that the short term charts are still bearish.
And the S & P is trading under the midband on its 30 minute and 60 minute charts. These levels should be resistance, until they are violated.
For the 30 minute chart, the midband is 2,931.21. And for the 60 minute chart, it is 2,957.27.
The range for the day was 24.03 points, which was less than the daily average true range which is now 41.62 points.
The day closed out at 4% of the daily bar. This suggests that yesterday's low should be violated before the high.
Pre open, the S & P 500 is trading about 20 points higher. This projects to an open around 2,920 or about 3 points below yesterday's high of 2,923.63.
Watch to see if the S & P clears yesterday's high. If it can, I would expect the market to continue higher. But, it should be resistance until it is violated.
The resistance level from yesterday's daily bar is in the 2,910 to 2,912 area.
PLCE reported and is down 9%. And LOW reported and is trading about 12% higher.
CRM reports Thursday after the close. And SPLK reports this afternoon after the close.
Here are the Key Levels for the Markets:
$VIX:
Major level: 28.13
Minor level: 27.35
Minor level: 25.78
Major level: 25.00
Minor level: 24.22
Minor level: 22.66
Major level: 21.88
Minor level: 21.10
Minor level: 19.53
Major level: 18.75 <
Minor level: 17.97 *
Minor level: 16.41
Major level: 15.63
The VIX closed out yesterday at 17.55. It closed 0.67 points high. The 18.75 level should still be reistance at this point.
The VIX did hold the minor 17.19. And watch the 19.53 level. This would be the next level on the upside.
SPX:
Minor level: 3,164.08
Major level: 3,125.00
Minor level: 3,085.95
Minor level: 3,007.85
Major level: 2,968.80 <
Minor level: 2,929.73 **
Minor level: 2,851.58
Major level: 2,812.50
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30
Yesterday closed out at 2,900.51. The objective should be to the 2,968.80 level.
Watch the minor 2,929.73 level on the upside. This should be resistance until it is violated. So, watch to see how the market reacts at this level.
2,905 should also offer minor support.
QQQ:
Major level: 196.88
Minor level: 196.10
Minor level: 194.53
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
The QQQ closed at 186.97. 187.50 is minor resistance. So if the QQQ does clear this level, it should head higher.
The next level on the upside is 189.06. Two closes above this level and the QQQ should run up to 193.75.
188.12 is minor resistance.
IWM:
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 149.15, closing back under the major 150 level.
Support should now be at 148.44. Watch this level on the downside. A break under it and the IWM should head lower.
On the upside, if the IWM clears 150, it should continue to bounce.
TLT:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31 **
Major level: 143.75
Minor level: 142.97
Minor level: 141.41
Major level: 140.63
Minor level: 139.85
Minor level: 138.28
Major level: 137.50
The TLT closed at 144.53, closing just above the major 143.75 level. This is a support level and should continue to offer support until it is violated.
The next minor level is 145.31. Two closes above this level and the TLT should test 150.
Still above the upper band on the daily chart, which is now 142.36.
GLD:
Major level: 143.75
Minor level: 142.97
Minor level: 141.41 **
Major level: 140.63
Minor level: 139.85
Minor level: 138.28
Major level: 137.50
Minor level: 136.72
Minor level: 135.16
Major level: 134.48
Minor level: 133.60
Minor level: 132.03
The GLD closed at 142.21. The close was just above the upper band on the daily chart, which is now 141.30.
Watch to see if it closes under it today. But, it should still be support until it is violated.
140.63 is a support level. Or should be. So, if it is violated, the GLD should head lower.
XLE:
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 <
Minor level: 58.60
Minor level: 57.03 ***
Major level: 56.25
The XLE closed at 57.79. At this point, the objective should be to 59.38.
57.42 is a minor support level. And 57.81 is a minor support. If the XLE can clear this level, it should continue higher.
AAPL:
Major level: 212.50
Minor level: 209.38
Minor level: 203.13
Major level: 200.00 <
Minor level: 196.88 **
Minor level: 190.63
Major level: 187.50
Minor level: 184.38
Minor level: 178.13
Major level: 175.00
Apple closed at 210.36. Apple took out the 212.50 level again.
Apple did cross into an uptrend on its daily chart. This implies it should head higher.
206.25 should be support.
WATCH LIST:
Bullish Stocks: MLM, MKC, CCI, VMC, LOPE, PG, FISV, SHAK, WELL, MPC, MMP
Bearish Stocks: BA, ILMN, ANTM, DPZ, BIIB, TSLA, MMM, AGN, FDX, JAZZ, FFIV
Be sure to check earnings release dates.
