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 two weeks of bearish closes, the market reversed last week. The S & P 500 closed at 2,443.05. For the week it was up 17.50 points. The market got as low as 2,417.35, before rallying to close higher.
Based on last week's weekly price bar, the support area should be in the 2,436 to 2,439 area. I mention this because last week, the market bounced off the support area from the prior week, virtually all week.
The S & P 500 managed to move back above the major 2,437.50 resistance level and held it for four days. At this point, it should continue to offer support. And with the weekly support area straddling the major 2,437.50 support level, I suspect this area will be tested this week.
The market has had trouble clearing the 2,453.12 level. Last week, it tested it twice and sold off against that level. For the market to move higher, it will have to clear the 2,453.12 level.
Also, the shorter term charts have moved into downtrends. 2,458 is the mid bollinger band on both the 30 minute and 60 minute charts. This level should offer resistance. The market will need to clear this level to move higher.
Pre open, the market is trading higher and should open to the upside.
My thoughts and prayers go out to the people of the Houston area.
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 11.28 on Friday. And the high for the day was 12.45.
We were looking for 12.50 to be resistance and it performed as expected. At this point, if the VIX closes under 11.72 today, it should drop to 9.38.
10.94 is still a minor support level. And 12.50 should continue to offer 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 will need two closes above 2,453.12 level to confirm a move up to 2,500.
Support should still be at 2,437.50. 2,445.30 is a minor resistance level. If the S & P 500 can clear this level, watch to see if it offers 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 141.97. A close today under 142.18 would imply a move down to 137.50.
140.63 should be minor support. And 143.75 could offer resistance.
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 136.88. The IWM should test 137.50. And came within 20 cents of the objective on Friday.
If the IWM can clear 137.50, it should offer support.
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 at 127.32 on Friday. A close today above 126.95 and the TLT should test 128.
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 122.74. A close today above 122.66 and the GLD should move up to 125.
122.27 should be minor support. 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, closing Friday at 63. To move higher, it will need two closes above 63.28.
62.70 should be minor support. And 63.67 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 87.96. 87.50 should still be major support. 89.06 is the key level to the upside. The FXY needs to clear that level to move higher.
AAPL:
Major levels for Apple are 162.50, 159.38, 156.25, 153.13, and 150.
Apple is holding just above the 159.38 support level. Shorter term charts still remain bullish, so buying against support is the viable strategy at the moment. 162.50 should be tested, assuming 159.38 holds as support.
WATCH LIST:
Bullish Stocks: NOC, HUM, ANTM, LLL, RTN, BABA, AAPL, MCD, SBAC, ADBE, AMT, BLUE, CRM, CNC, SPLK, AABA, ATVI, WERN
Bearish Stocks: ULTA, GWW, FLT, AGU, VRSK, OMC, AKAM, CAKE, SAVE< OTEX, STX, BGS, OMI
Be sure to check earnings release dates.