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 $1.06
ET Long at $11.78
Premium Collected $0.35
ET Long at $7.50
Premium Collected $0.60
MFA Long at $4.20
Premium Collected $0.95
BOX Long at $17.65
BOX Short Dec 18th - $18 call @ $.25
Premium Collected $1.30
GILD Long Dec 11th - $60 Call @ $2.20
GILD Short Dec 11th - $65 Call @ $.33
PS Long at $16.84
PS Short Dec 18th - $17.50 Call @ $.55
HEAR Long at $19.60
HEAR Short Dec 19th - $20 call @ $.65
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Yesterday, I suggested another covered call and it was on HEAR. The idea was to buy the stock and sell the December 18th-$20 call against the position.
If the calls are assigned next Friday, the return will be 5.4% for just over one week.
There is one position that expires today and that is the long $60 call on GILD. GILD has not made the push I expected and I will look to close the option and recoup what value we can.
The S & P 500 continued the slide from Wednesday. For the day, the S & P 500 closed 4.72 points lower.
The day closed out at 3,668.10.
And the daily bar closed at 69% of the range of the daily bar. This does put the odds of violating yesterday's high of 3,678.49 before the low of 3,645.18.
Having said that, the pre open, the S & P is trading about 26 points lower.
Assuming this trading holds up through the open, the market should open around 3,642 or about 3 points below yesterday's low.
This suggests that the low should become resistance. And the close, which was 3,668.10 should as well.
3,662 is the midpoint and should be a resistance level.
In taking a look at how the weekly price bar is forming, it is contracting once again. The range for the week so far is only 67.21 points.
The weekly average true range is 129 points. The range so far is only 52% of the weekly average true range.
The weekly midpoint is 3,678. And yesterday's close is about 10 points below the midpoint.
The projected open would also take out the weekly low. Low for the week is also yesterday's low of 3,642.
I also want to mention that the upper band on the weekly chart is 3,731.85. And this week's high is 3,712.39 or about 20 points below it.
AVGO reported and is trading about $7 lower. ORCL reported and is relatively flat.
Here are the Key Levels for the Markets:
$VIX:
Major level: 31.25
Minor level: 30.47
Minor level: 28.91
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
The VIX closed at 22.52. The VIX closed .25 points higher. Yesterday's high went to 23.46 or about 90 cents above the minor 22.66 level, before dropping to close under the minor 22.66 level again.
The VIX will still need two closes above 22.66 to move up to 25. So, watch this level again today.
A break under 21.88 and the VIX should drop to 18.75.
The VIX is overbought in the short term. Watch the 23 area for resistance.
Remember, as the VIX drops, the market should head higher.
S & P 500:
Major level: 3,749.80 <
Minor level: 3,710.75
Minor level: 3,632.65 **
Major level: 3,593.60 <
Minor level: 3,554.55
Minor level: 3,476.45
Major level: 3,437.40
Minor level: 3,398.35
Minor level: 3,320.25
Major level: 3,281.20
Minor level: 3,242.15
Minor level: 3,164.00
Major level: 3,125.00
The S & P closed at 3,668.10. The S & P closed 4.72 points lower.
Support should still be at the 3,632.65 level. The market should open about 10 points above this level. Watch for support at this level.
If 3,632.65 can hold, a rally back to the minor 3,671 level is possible.
The 3,650 area should also be a technical support area.
QQQ:
Major level: 312.50
Minor level: 310.94
Minor level: 307.81
Major level: 306.25
Minor level: 304.69
Minor level: 301.56 **
Major level: 300.00
Minor level: 298.44
Minor level: 295.31
Major level: 293.75
Minor level: 292.19
Minor level: 289.06
Major level: 287.50
Minor level: 285.94
The QQQ closed at 302.52. The QQQ closed 1.21 higher.
The QQQ did reclaim 301.56 level. Watch this level today. A close above this elvel and the QQQ should test 306.
A break under and look for a run to 298.44.
Technical support is around 300. And technical resistance is around 305.
IWM:
Major level: 193.75 <
Minor level: 192.19
Minor level: 189.06 **
Major level: 187.50 HIT
Minor level: 181.25
Minor level: 176.56
Major level: 175.00
Minor level: 173.44
Minor level: 170.31
Major level: 168.75
Minor level: 167.19
Minor level: 164.06
Major level: 162.50
Minor level: 160.94
The IWM closed at 191.24. The IWM closed 1.83 higher on the day.
The objective for the IWM should still be up to 193.75.
And it would suggest that support should be at the 187.50 level.
190 should be technical support.
TLT:
Minor level: 166.41
Major level: 165.63
Minor level: 164.85
Minor level: 163.28
Major level: 162.50
Minor level: 161.72
Minor level: 160.16
Major level: 159.38
Minor level: 158.60
Minor level: 157.03 **
Major level: 156.25 Hit
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
The TLT closed at 158.21. It closed 1.39 higher. The TLT still needs two close above the 157.03 level to move higher. And yesterday was the first close above it.
A close today above 157.03 and the TLT should test 159.38.
Watch the 156.25 level. A break under this level and the TLT should head lower.
The TLT is right at the midband on the 60 minute chart. This level is 158.26. Watch this level today. If it clears it, the TLT should head higher.
Completed the test of the midband on the 60 minute chart as expected.
GLD:
Minor level: 182.03
Major level: 181.25
Minor level: 180.47
Minor level: 178.91
Major level: 175.00
Minor level: 174.25
Minor level: 172.70 **
Major level: 171.88
Minor level: 171.10
Minor level: 169.53
Major level: 168.75
Minor level: 167.97
The GLD closed at 172.17. The GLD closed .33 lower on the day. The GLD closed back under the minor 172.70 level.
Watch the 171.88 level today. A break under this level and the GLD should head lower.
The GLD is under the midband on its 60 minute chart. That price level is 175.42.
This level should be resistance.
And watch the 174 area for technical resistance as well.
XLE:
Major level: 43.75
Minor level: 42.95
Minor level: 41.40 **
Major level: 40.63 < HIT
Minor level: 39.83
Minor level: 38.28
Major level: 37.50
Minor level: 36.72
Minor level: 35.15
Major level: 34.37
Minor level: 33.59
Minor level: 32.03
Major level: 31.25
The XLE closed at 41.60. The XLE closed 1.24 higher on the day. This was the first close above 41.40. A close today above this level and the XLE should test 43.75.
Watch for support at the 40.63 level.
Technical support is around 40.76.
AAPL:
Minor level: 140.63
Major level: 137.50
Minor level: 134.38
Minor level: 128.13
Major level: 125.00 <
Minor level: 121.88 **
Minor level: 115.63
Major level: 112.50
Minor level: 109.13
Minor level: 103.13
Major level: 100.00
Apple closed at 123.24. Apple closed $1.46 higher.
Target now should still be up to the 125 level.
Watch for support at 121.88.
The 121.00 area should provide technical support.
WATCH LIST:
Bullish Stocks: TTD, GOOGL, TSLA, LRCX, RH, ASML, IDXX, MSCI, AVGO, RNG, MSTR, SPOT, PANW, FDX, MLM, KLAC, TEAM, GS, HON, CAT, ZS
Bearish Stocks: AMT, PNW, ED, K, EVRG, EQC
