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
CHKP Long August 16th - $110 call for $2.70
CHKP Short August 16th - $115 call for $0.60
DLTR Long August 16th - $102 call for $2.35
DLTR Short August 16th - $107 call for $0.40
XLNX Long September 20th - $110 call for $4.80
XLNX Short September 20th - $115 call for $2.70
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Yesterday, I suggested a debit spread on XLNX. Though I did not specify that September monthly calls, if you priced out the deal, you would have realized the options were the monthly options that expire on September 20th.
The market continued to bounce yesterday from its oversold condition. For the day, the S & P 500 closed 54.11 points higher, at 2,938.09.
The range exceeded the daily average true range of 37.85. The intra day range was 44.25 points. The range was smaller than the close to close relationship because of the bullish gap open.
And for the day, the S & P closed at 99% of the daily bar. This does imply that yesterday's high of 2,938.72, should be violated before the low, which was 2,894.47.
Support from yesterday's daily bar is in the 2,917 area. The support area is about 20 points below the close.
What is interesting about that price is that pre open the market is trading about 17 points lower. So it does suggest that the 2,917 support area should be tested right at the open.
I also have support in the 2,913 area. So, watch these levels this morning.
The weekly bar at this point has had a range of 117 points. This is greater than the weekly average true range which is 75 points.
So, it is possible that the range for the week is in.
The midpoint of the weekly bar is 2,880, or about 60 points below yesterday's close.
A close above this level would be bullish and set up a weekly hammer bar.
At this point, I am still biased to the upside and buying at support.
The S & P is still trading below the midband on the 60 minute chart, which is 2,973.
As I wrote a few days ago, after closing back inside the lower bands, the objective is to the midband.
BKNG has a massive $119 jump after reporting. And ROKU was up 20.86% after their earnings. That was a move of $21.06.
And pre open, UBER is selling off after reporting.
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 certainly took out the 18.75 objective we were looking for. It closed the day out at 16.91, down 2.58 points for the day.
With a close under 17.97, this now implies that if the VIX closes under 17.97 today, it should drop to 15.63.
The 18.75 level and the minor 17.97 level should both offer resistance.
17.19 is a minor level to watch as well.
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
The S & P closed the day at 2,938.09. At this point, I still am biased for a retest of the 2,968 level.
2,905.30 should offer support. 2,929 is also a level to watch today.
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 188.26. The QQQ took out the 187.50 objective we were looking for.
The next minor level on the upside is 189.06. Two closes above that level and the QQQ should test 193.75.
185.94 should offer support. And watch the 187.50 level for support.
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 152.54. It jumped 3.22 as we expected.
Though it is below the midband on the daily chart, the daily chart continues to move closer to an uptrend.
If it can do that, I would expect it to clear the midband.
150 should be support. And if it clears 153.13, I would expect the IWM to head higher.
TLT:
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: 134.38
Minor level: 133.60
The TLT closed at 140.33. It closed just under the 140.63 level.
But, it is still above the upper band on the daily chart, which is 138.70.
I don't expect a serious pullback until it closes back inside the upper band.
139.06 is still minor support.
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
Just like the TLT, the GLD is seriously overbought. It closed out at 141.73.
If the GLD can close above 141.41 today, the upside should be to 143.75.
Yesterday, I said that 140.63 should be support and the low for the day was 140.71.
137.50 should still be support on a pullback. And I do believe that 143.75 should be a tough level to clear.
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 jumped 1.67 and closed at 59.76.
Resistance should be at 60.94 and 62.50. If the XLE can move up to 62.50 on this drive, we may be seeing a bottom forming.
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 jumped 4.39 to close at 203.43. We expected 200 to offer support and yesterday's low was 199.39.
A close today above 203.13 and the upside for Apple should be to 212.50.
200 should be strong support.
WATCH LIST:
Bullish Stocks: SHOP, MLM, MCO, LHX, WIX, RNG, GLD, VMC
Bearish Stocks: BA, DPZ, DXCM, URI, FIVE, FANG, EOG, LGND, JACK, CXO, GRUB, COP
Be sure to check earnings release dates.
