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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Yesterday saw a continuation of the slow grinding summer action that has been the norm for the past month.
The S & P 500 closed up 4.08, at 2,480.91. The high for the day was virtually the close, which means the market is within 20 points of the 2,500 objective, we have been looking for.
The range for the day was a paltry 5.07 points. The average true range has now dropped to 11.69 points, so yesterday's range was less than one half the ATR.
The low for the day was 2,475.88. That was right at the upper level of the weekly support level of 2,473 to 2,476, that I mentioned yesterday.
Pro open, the market has a slight bearish bias, so look for the weekly support level to be retested.
All this dull action makes you think about shorting this market, but I once again caution against that.
I think any pullback should be minor at this. This is because all intra day timeframes for the S & P 500 are in uptrend formations. The 2,474 to 2,576 area should offer support on a pullback.
Earnings should continue to be the main focus this week. VRX is set to open about 10% higher based on their earnings.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
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 <
Minor level: 8.60 **
Minor level: 7.03
Major level: 6.25
9.77 is the minor support level I mentioned yesterday and the low was one penny under it yesterday.
For the VIX to head lower, it needs to break under 9.77.
10.55 should be resistance. 9.38 should ultimately be tested.
$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 closed at 2,480.91.
Minor support should still be at 2,476.60 and 2,472.70.
2,484 should be the target.
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 144.56 yesterday. It is back above the major 143.75 level.
Minor support should be at 144.14. And 143.75 should offer strong support.
IWM:
Major level: 146.88
Minor level: 146.09
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
The IWM closed at 140.44. 140.63 should be tested.
139.84 should be support.
TLT:
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00 <<
Minor level: 124.61 **
Minor level: 123.83
Major level: 123.44
Minor level: 123.03
The TLT closed just above 125 yesterday, at 125.07.
124.61 should be support. Two closes under that level and the TLT should drop to around 123.
But, I would expect minor support at 124.61.
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
119.14 is a minor support level for the GLD. And if the GLD can close above 119.53 for two days, I would expect a move back up.
120.31 should be resistance.
XLE:
Minor level: 69.53
Major level: 68.75 <
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
The XLE closed at 65.14. It will need two closes under 64.85 to move lower.
65.63 should now be resistance. And 64.45. is minor support.
FXY:
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
Minor level: 83.60
Minor level: 83.20
Major level: 82.81
86.52 is minor support. 87.11 is minor resistance. If the FXY breaks under 86.52, it should head lower.
86.72 should offer minor support.
AAPL:
Major levels for Apple are 162.50, 159.38, 156.15, 153.13, and 150.
157.81 should now be minor support. Target is to 162.
WATCH LIST:
Bullish Stocks: LMT, NOC, HUM, BIDU, STMP, UNH, LLL, RTN, ALGN, AET, AAPL, VRTX, CB, SYK, ACN, RCL, COL, AMT
Bearish Stocks: PANW, JACK, PRGO, WAGE, TEN, SGEN, CAKE, FLS, OMI
Be sure to check earnings release dates.
