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
..........................................................................................
With the slow summer trading, the market continued to bounce off various support and resistance levels that we have been discussing.
For the day, the S & P 500 closed 5.07 points to the downside and had a range of 14.20 points. It is still trading within the body of the long range candle from Tuesday.
The midpoint of that large range candle is 2,444.22. This is right in the middle of the weekly resistance level of 2,440 to 2,448.
The high for the day was 2,450, which is two points above the weekly resistance level. And the low for the day was 2,436.19, which of course is right around the major 2,437.50 resistance line.
Pre open the S & P 500 is trading to the upside around 6 points. This would put the open around 2,445. Once again right around our previously identified resistance levels.
On a pullback this morning, I would expect the 2,437.50 level offer support. And the key again is if the S & P 500 can close above 2,453 level.
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 got just above the 12.50 level before selling off below it. I still expect 12.50 to offer resistance on the VIX.
Minor resistance is at 14.06 and 13.28. 10.94 is a minor support level.
$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 will need two closes above 2,453.12 level to confirm a move up to 2,500.
I would expect support at 2,437.50. The 2,445.30 level should also be watched today. If the market can clear this level, it should be support.
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 142.27. This is just above the minor 142.18 support level. And resistance could come in at 143.36. The QQQ needs to clear 143.36 to head higher.
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
The IWM closed at 136.49. The IWM should test 137.50.
135.94 should be minor support. 139.06 is minor resistance.
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 closed under 126.95, so it still needs two closes above 126.95 to move up to 128.13.
126.56 should be minor support. 127.73 could offer minor resistance.
Look to buy against 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 122.29. It still needs two closes above 122.66 to move up to 125.
121.88 should be minor support. If that does not hold, I would expect 121.48 to. 124.22 could offer minor resistance.
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
The XLE continues to hold the 62.50 level. To move higher, it will need two closes above 63.28.
62.11 should be minor support. And 63.28 resistance.
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 at 87.74 yesterday. 87.50 should be major support. 88.09 is minor support. I would expect a retest of the highs after the FXY finds support.
AAPL:
Major levels for Apple are 162.50, 159.38, 156.25, 153.13, and 150.
160.94 is minor resistance. Apple will need to clear this level to move higher.
158.59 should offer minor support and yesterday's low was 158.55. 158.98 should also be minor support.
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.
