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
DYN Long at $12.55
Premium Collected $0.48
APA Long Oct $47.50 Call at $3.45
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After the sell off, which began about 10 points shy of the 2,500 objective, the S & P 500 has dropped almost 74 points.
The drop is about 12 points greater than a one level drop.
The market is trying to find support and bottom. It held the 2,421.88 level I mentioned yesterday.
The low for the day was 2,417.35. The S & P 500 managed to rally to close above it. It closed at 2,428.37.
As I mentioned, for the market to continue to drop, it would need two closes under 2,421.88. So, look for this level to possibly be retested today again.
I also mentioned that price had dropped under the lower band on the 3 minute chart. It was under the lower band last Friday and yesterday.
The lower band on the 30 minute chart is 2,421.97 and yesterday, the market managed to close above it.
But, this does set up a scenario where it could be retested again.
Resistance from last week's weekly price, which is in the 2,440 to 2,448 area, should be monitored.
Tomorrow is our webinar. Be sure to email any questions you have to davismdt@gmail.com and I will try and address them.
Continue to follow the resistance levels.
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: 14.84
Minor level: 13.28
Major level: 12.50
Minor level: 11.72
Minor level: 10.16 **
Major level: 9.38 <
The VIX closed at 13.27, just one cent under the minor 13.28 level. A retest of 12.50 would be the most likely scenario.
I would expect 12.50 to offer support. 14.84 could order resistance.
$SPX:
Major level: 2,500.00
Minor level: 2,484.38
Minor level: 2,453.12 **
Major level: 2,437.50 <
Minor level: 2,421.88
Minor level: 2,390.62
Major level: 2,375.00
Minor level: 2,359.38
Minor level: 2,328.12
Major level: 2,312.50
The S & P 500 is trying to hold the minor 2,421.88 level. This is the key level at the moment, because if the S & P 500 closed under that level, it would signify a drop to 2,375.
2,437.50 should be resistance. For the S & P to move higher, it will need to clear this level.
The S & P 500 should open higher this morning. Watch to see if it can clear 2,437.50.
QQQ:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75 <
Minor level: 142.18
Minor level: 139.06
Major level: 137.50
Minor level: 135.94
Minor level: 132.81
The QQQ closed at 141.05. 140.63 is a minor support level. If the QQQ can hold this level, I would expect a bounce.
Support should also be at 139.84. Expect some resistance at 142.19.
IWM:
Minor level: 144.53
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: 135.15
Major level: 134.37
Resistance should now be at 137.50. And watch the 135.94 level for resistance.
The IWM is trying to hold the major 134.38 level. A break under this level and the IWM could drop 131.
TLT:
Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56 <
Minor level: 126.17 **
Minor level: 125.39
Major level: 125.00
Minor level: 124.61
Minor level: 123.83
The TLT is just under the minor 126.95 level. It will need two closes above 126.95 to move up to 128.13.
126.17 should be minor support.
GLD:
Major level: 125.00
Minor level: 124.22
Minor level: 122.66 **
Major level: 121.88 <<
Minor level: 120.32
Minor level: 119.53
Major level: 118.75
Minor level: 117.97
The GLD closed at 122.76. A close today above 122.66 and the GLD should test 125.
121.88 should be minor support.
XLE:
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
At this point, 61.72 is a support level. A break under this level and the XLE should continue to drop.
Two closes under 61.72 and the XLE should drop to 59.38.
The XLE is oversold short term and a bounce should happen.
FXY:
Major level: 89.06
Minor level: 88.67
Minor level: 87.89
Major level: 87.50 <
Minor level: 87.11 ***
Minor level: 86.33
Major level: 85.94
Minor level: 85.55
Minor level: 84.77
Major level: 84.38
The FXY closed above 87.89. This is the second day it closed above it, so the FXY should test 89.
87.50 should be major support.
AAPL:
Major levels for Apple are 162.50, 159.38, 156.25, 153.13, and 150.
Apple is trying to hold the 156.25. If Apple can get above yesterday's high, which was 157.89, expect it to head higher.
WATCH LIST:
Bullish Stocks: STMP, STZ, ANET, BABA, COST, ADBE, SBAC, AMT,
MA, CLX, WEN, TAL, CNP
Bearish Stocks: AYI, GWW, SNA, FFIV, BWLD, CSO, AAP, CLB, EOG, GPC, RS, MMP, SLB
Be sure to check earnings release dates.
