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
IQ Long at $22.40
IQ Short Dec 18th - $23 call @ $.25
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The short calls on the BOX and HEAR positions should have been exercised on Friday and your stock sold at the strike price.
The return on the HEAR position 5.4% for 8 days. If you traded the suggested 300 share lot, the gain was $315.
The return on the BOX position, including call premium, collected worked out to 9.3% for about 2 months. The cash return, if you traded the suggested 400 shares, worked out to $660.
The short $23 call on IQ expired on Friday. I will continue to suggest selling calls on this position.
The S & P 500 reversed to the downside on Friday. For the day, the S & P closed 13.07 points lower. The day closed out at 3,709.41.
The S & P did violate Thursday's high as projected by Thursday's close percentage of 81%.
The high for the day was 3,726.70 and was made just after the open.
From the high, the market sold off all day and hit a low of 3,685.84. The market did manage to rally back to close a 58% of the range of the daily bar.
But, pre open, the S & P is selling off. As I write this, the S & P is trading about 68 points lower.
This projects to an open around 3,641 or about 44 points below Friday's low.
Watch the 50% level of the projected gap, which is around 3,664.
If this level is taken out, then look for a gap fill. A gap fill would be a move to the low, which was 3,685.84.
The projected open would also put the market below last week's low, which was 3,645.84.
By violating the weekly low, the weekly levels should be resistance. These levels would be around 3,686 to 3,692.
Watch these levels on a rally.
Intra day trends are still bullish. This would suggest we should see a bounce once support comes in.
The question is where should support be?
The 3,627 area is a technical support level on the 60 minute chart. A break under this level and the S & P could drop to 3,583, as this would be the next level of support.
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 21.57. The VIX closed .36 points lower.
The VIX should bounce this morning. Watch the minor 22.66 level. Two closes above this level and the VIX should head up to 25.
And technical resistance is around 25. A break above this level would indicate the VIX 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 3,709.41. The S & P closed 13.07 points lower.
The S & P closed just under the minor 3,710.75 level. A close today under this level and the
S & P should head to 3,593.60.
The projected open should be around 3,641. Watch the minor 3,632.65 level. If this cannot hold, look for the S & P to head lower.
The 3,627 area should 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 310.06. The QQQ closed .94 lower.
The QQQ got as high as 311.98 before closing under 310.94. A close today under 310.94 and the QQQ should drop to 306.25.
Support should be at the 310.
IWM:
Minor level: 195.31 **
Major level: 193.75 HIT
Minor level: 192.19
Minor level: 189.06
Major level: 187.50
Minor level: 181.25
Minor level: 176.56
Major level: 175.00
Minor level: 173.44
Minor level: 170.31
Major level: 168.75
The IWM closed at 195.34. The IWM closed .95 lower on the day.
The objective should be to 200, but with the sell off this morning, look at the 193.75 level. A break under this level and the IWM should drop.
195 should be technical support. A break under this level and the IWM should head lower.
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 156.33. It closed .47 lower. At this point, watch the 156.25 level.
A break under this level and the TLT should head lower.
The TLT broke under the 60 minute chart. This level is 158.04. With a break under this level, it should be resistance.
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 176.44. The GLD closed .30 lower on the day. The GLD closed back above the major 175 level.
By clearing 175, it should be support.
The next minor level is 178.91. Two closes above this level and the GLD should head up to 181.
The GLD took out the midband on its 60 minute chart. That price level is 175 and the GLD closed above it. The midband should be support.
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 39.40. The XLE closed .67 lower on the day. Watch the major 39.83 level.
A close today under 39.83 and the XLE should drop to 37.50.
But, the XLE is above the midband on the daily chart, which is 38.24 and should be support.
AAPL:
Minor level: 140.63
Major level: 137.50
Minor level: 134.38
Minor level: 128.13
Major level: 125.00 HIT
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 126.65. Apple closed $2.04 lower.
Watch the 125 level. A break under this level and Apple should drop.
The 122.00 area should provide technical support.
WATCH LIST:
Bullish Stocks: AMZN, SHOP, TSLA, NFLX< ADBE, ROP, AVGO, DPZ, COUP, TWLO, ROKU, ADSK, W, CVNA, OKTA, DE, PYPL, SQ, MSFT, AMGN, BIDU, ETSY, CAT
Bearish Stocks: ETR, ED, EVRG, NI
