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
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DUST Long $4.50
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RRC Long at $11.85
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RRC Long at $9.20
RIG Long at $8.81
Premium Collected - $1.45
FEYE Long at $17.18
Total Premium Collected $0.80
TEVA Long at $9.78
TEVA Short Dec 20th - $10 Call - $0.26
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The upmove for the market continued. The market gapped lower and ran up to the high.
At that point, it sold off and it appeared that the market would start the reversal everyone is looking for.
But, the S & P found support at 3,156.51 before rallying back to close just above Thursday's close.
I mentioned where support for Friday should be. I wrote this ... "The support area from yesterday should be in the 3,155 to 3,157 area."
I want to point out that the midpoint of this support area is 3,156.14, which was within 40 cents of the actual low.
And the day closed out at 3,168.80, just 23 cents above the Thursday close.
This may not seem that significant, but it was the second day that closed above the minor 3,164.08 level.
This would suggest that the next upside target for the S & P will be to 3,281.20, or within 20 points of 3,000.
But, the Friday daily price bar did close out with a doji bar.
This is when the open is about the close. It can mean indecision for the market. But, of course, we are still biased to the upside with a target for the market higher than where we are now.
The key support levels for today will be the close of 3,168.80 and the high of 3,182.68. A move above these levels would indicate that support should be at these levels.
The weekly price bar closes out 22.89 points higher. And the weekly range was 56.59 points, which was under the weekly average true range, which is 66 points.
The support area from last week's weekly price bar is in the 3,155 area.
And the support area from Friday's daily bar is around 3,168.
Pre open the S & P is trading about 20 points higher.
FDX reports tomorrow after the close. And MU reports Wednesday after the close. NKE reports Thursday after the close.
Here are the Key Levels for the Markets:
$VIX:
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 <
Minor level: 14.85 **
Minor level: 13.28
Major level: 12.50
Minor level: 11.72
Minor level: 10.16
Major level: 9.38
The VIX sold off again and closed out the day at 12.63. The VIX sold off over 9% on Friday.
This puts the VIX back to the major 12.50 level. And with the market trading higher pre open, I would expect the VIX to open lower. Watch the 11.72 level.
A break under 11.72 and the VIX should continue lower.
13.28 should be resistance. And the 14.80 area should offer technical resistance.
SPX:
Major level: 3,281.20
Minor level: 3,242.15
Minor level: 3,164.08 ***
Major level: 3,125.00 < Hit
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
The S & P closed at 3,168.80. This was the second close above 3,164.08, which puts the upside for the S & P to the 3,281.20 level.
3,183.59 is a minor resistance level on the upside. Watch this level today.
3,164 should be support. And technical support is around 3,150.
QQQ:
Major level: 209.39
Minor level: 208.61
Minor level: 207.04 ***
Major level: 206.25 HIT!
Minor level: 205.48
Minor level: 203.91
Major level: 203.13
Minor level: 202.35
Minor level: 200.78
Major level: 200.00
Minor level: 199.22
Minor level: 197.77
Major level: 196.88
The QQQ closed at 207.19. The QQQ had its first close above 207.04. A close today above it and the QQQ should move up to 209.
206.25 is major support. 205 should offer technical support.
IWM:
Major level: 168.75
Minor level: 167.19
Minor level: 164.06
Major level: 162.50 Hit
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 163.33. The IWM will need two closes above 164.06 to move higher.
162.50 should offer strong support. Not only is it a resistance level, but it is a technical support level.
Short term charts remain bullish, so momentum is still bullish. Same as Friday.
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 HIT
Minor level: 135.84
Minor level: 132.81
Major level: 131.25
The TLT closed at 139.04. A close today above 138.38 and the TLT should test 140.63.
139 is now technical support. And major support is at 137.50, so if the TLT moves under it, expect it to keep dropping.
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: 134.38
The GLD closed at 139.05. A break under 138.28 and the GLD should continue lower.
137.50 should be strong support. So if the GLD does break under it, I would expect it to head lower.
The key level is 134.38 on the downside. If the GLD has two closes under this level, it could drop to 125.
Technical resistance is around 140.
XLE:
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
Minor level: 55.86
Minor level: 55.08
Major level: 54.69
The XLE closed at 60.31. 61.72 should be resistance.
The XLE closed back under the midband, which is 60.99. This should be resistance.
60 should be technical support.
AAPL:
Major level: 281.25
Minor level: 277.35
Minor level: 269.54 **
Major level: 265.63 HIT!
Minor level: 261.72
Minor level: 253.91
Major level: 250.00
Minor level: 246.88
Minor level: 240.63
Major level: 237.50
Apple closed at 275.15. 281.25 should be the objective for Apple. And Apple is within $6 of the target.
And minor support should now be at 269.54. And technical support is around 268.
Needless to say that short term trends remain bullish.
WATCH LIST:
Bullish Stocks: GOOGL, SHOP, TSLA, ADBE, AVGO, MA, DPZ, ASML, AAPL, BDX, ZBRA, NVDA, GS, BABA, V, MCD, URI, CB, MSFT, JPM
Bearish Stocks: SPG, SJM, WBA, PLCE, CVLT, CAKE, SAVE, IRM, FL, BEN
Be sure to check earnings release dates.
