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
SNAP Long at $15.20
Premium Collected - $2.79
AMC Long at $15.27
Premium Collected - $1.98
Short Dec $17.00 call @ $0.20
THC Long at $14.63
Short Dec $15.50 call @ $0.30
Premium Collected - $1.70
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Yesterday, I suggested you sell a call against the AMC position. This now means that there are two short call positions that expire this Friday. The $17 call on AMC and the $15.50 call on THC.
The S & P 500 continues to head up, closing at 2,664.1, up 4.12 points on the day. The high for the day was 2,669.72, which was above the upside level, which is 2,666.05.
Though the S & P 500 could not close above the 2,666,05 level, I suspect it will be challenged again today.
The major negative yesterday was the fact that both the VIX and the S & P 500 diverged.
Both closed to the upside, which should warn us that a pullback is possible.
This bounce in the VIX also coincides with the VIX at the major 9.38 level.
Not that a bounce at this level is a shock. It has been strong support on the VIX for about two years now.
With the short term 30 minute and 60 minute charts firmly in uptrends, a rally would be expected after a pullback.
Today at 2:00 we will hear from the Fed regarding raising interest rates.
A rate hike is widely anticipated.
The final webinar of 2017 is today at 12:00 EST. I hope to see you on the webinar.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
Major level: 14.06
Minor level: 13.67
Minor level: 12.89
Major level: 12.50
Minor level: 12.11
Minor level: 11.33
Major level: 10.94
Minor level: 10.55
Minor level: 10.16
Major level: 9.38 **
Minor level: 8.99 <
Minor level: 8.20
Major level: 7.81
The VIX got as low as 9.21, before rallying back to close above 9.38. It closed at 9.92.
Watch to see if 9.38 holds today. If so, a rally to 10.94 is possible. But, I would expect resistance at 10.94.
The short term 60 minute chart for the VIX has just moved into a downtrend. This suggests more movement to the downside.
$SPX:
Major level: 2,695.30
Minor level: 2,685.55
Minor level: 2,666.05 **
Major level: 2,656.30 <
Minor level: 2,646.53 **
Minor level: 2,626.98
Major level: 2,617.20
Minor level: 2,607.43
Minor level: 2,587.88
Major level: 2,578.10
The S & P 500 did close above the 2,656.30 level. This level should offer support. If it is taken out, 2,646 should hold.
To move higher, the S & P 500 will need two closes above 2,666.05.
QQQ:
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25 **
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
Minor level: 152.34
Minor level: 150.78
Major level: 150.00
The QQQ closed at 155.69. Yesterday's high came within 10 cents of the 156.25 level.
155.47 should offer minor support. Short term momentum remains bullish.
If the QQQ cannot take out 156.25, a pullback could happen.
IWM:
Major level: 156.25
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
Minor level: 152.35
Minor level: 150.78
Major level: 150.00 <
Minor level: 149.22
Minor level: 147.66
Major level: 146.88
The IWM closed at 150.88. The IWM should test 150. And I would expect strong support at 150.
150.78 should be minor support. 151.56 is minor resistance.
TLT:
Major level: 128.13 <
Minor level: 127.35
Minor level: 125.78 **
Major level: 125.00 <
Minor level: 124.61
Minor level: 123.83
Major level: 123.44
Minor level: 123.05
The TLT closed at 126.38. 125.78 should be support.
126.76 is minor resistance.
For the short term, 126.17 is the key price level. Two closes under that level and the TLT should drop to 125.
GLD:
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
Major level: 121.88
Minor level: 121.10
Minor level: 119.53
Major level: 118.75 <
Minor level: 117.96
Minor level: 116.41
Major level: 115.63
The GLD closed at 118.15. The GLD got as low as 117.40, before rallying back.
To move lower, the GLD will need two closes under 117.96.
A bounce here was expected based on the oversold short term condition.
XLE:
Major level: 73.44
Minor level: 72.66
Minor level: 71.09
Major level: 70.31
Minor level: 69.92
Minor level: 69.14 **
Major level: 68.75 <
Minor level: 68.36
Minor level: 67.58
Major level: 67.19
The XLE closed at 69.59. 70.31 should be the objective.
Short term momentum has shifted to the upside. 69.14 is a short term support level.
FXY:
Major level: 86.72
Minor level: 86.53
Minor level: 86.14
Major level: 85.94
Minor level: 85.75
Minor level: 85.36
Major level: 85.16 <
Minor level: 84.96 **
Minor level: 84.55
Major level: 84.38 <<
The FXY closed at 84.55. Same as yesterday. The FXY is sitting on the minor 84.55 level.
Still looking for support at 84.38. So, watch this level again today. A break under this level would tell us the FXY is heading lower.
Setting up for a bullish move.
AAPL:
Major levels for Apple are 175, 171.88, 168.75, 165.63, 162.50, and 159.38.
Apple closed at 171.70. Biased for a test of 175.
171.88 should now be support. And Apple closed within 20 cents of the support level. Watch to see if this level holds.
WATCH LIST:
Bullish Stocks: BA, LMT, FDX, FLT, AET, MCD, BLUE, SAGE, WYNN, CLX, CAT, CBOE, UTX, CRI, RH, RL, PSX, VLO
Bearish Stocks: AGN, XEC, EOG, CRUS, APC, APA, NFX, AKR, PI, CXW, WU, FNSR
Be sure to check earnings release dates.
