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 $14.54
Total Premium Collected - $1.65
OI Long Feb $19 call @ $1.70
MDR Long @ $9.31
PHM Long Dec $25.50 put @ $0.80
PHM Short Dec $24.00 put @ ($0.35)
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You should have closed the Facebook debit spread yesterday, booking the profit for 4 days. The trade was based on the oversold condition of Facebook and that we were looking for a bounce. The move yesterday gave us a chance to book some quick profits.
Yesterday saw a massive spike in the markets based on the news that the US and China had agreed to hold off on imposing tariffs for 90 days.
This sent all major markets higher.
The S & P 500 ended up closing 30.20 points higher at 2,790.37.
The high for the day was 2,800.18, which took out the major 2,793.00 by about 7 points.
The S & P 500 has now moved three levels off the low on November 23rd. Moving three levels is bullish, as typically bear moves do not exceed two levels.
This now suggests that the minor 2,780.78 should be support. And if the market pulls back lower than 2,780.78, that 2,744.10 should offer strong support.
The bullish gap to the upside does give me some concern that a pullback to fill the gap should happen.
The question is when.
The high of the gap is 2,760.88 and should offer support if it is tested. This level would still be above the upper band on the monthly chart which would be bullish for the market.
As a reminder, all markets are closed tomorrow for a national day of mourning for President Bush.
Because of this, I will not publish a daily update tomorrow and will cancel the regular webinar.
Continue to monitor the levels as I mentioned above.
Here are the Key Levels for the Markets:
$VIX:
Major level: 31.25
Minor level: 29.69
Minor level: 26.56
Major level: 25.00
Minor level: 23.44
Minor level: 20.31 **
Major level: 18.75 <
Minor level: 17.19 **
Minor level: 14.06
Major level: 12.50
The VIX closed at 16.44. It closed down 1.63 for the day. This was the first close under 17.19 and now implies that if the VIX closes under it today, it should retest the 12.50 level.
15.63 should be minor support. And look for resistance at 17.19.
SPX:
Minor level: 2,805.20
Major level: 2,793.00 <
Minor level: 2,780.78
Minor level: 2,756.33 **
Major level: 2,744.10 <<
Minor level: 2,731.90
Minor level: 2,707.50
Major level: 2,695.30
Minor level: 2,683.10
Minor level: 2,658.70
Major level: 2,646.50
Minor level: 2,634.30
Minor level: 2,609.90
Major level: 2,597.70
Now that the S & P 500 hit the major 2,793 level, the major 2,744.10 level should offer support.
2,773.40 is a minor support level. If that does not hold, I would expect the 2,750 area to offer support.
QQQ:
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
Minor level: 157.81
Major level: 156.25
The QQQ closed at 172.33. It closed 2.96 points higher. This now suggests that if the QQQ can close above 170.31 today, it should move up to 175.
Support should be at the minor 170.31 if the market does pullback. And I would expect 168.75 to offer 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 154.08. It was up 1.46 on the day.
The objective should be to the 156.25 level.
153.13 should offer support on the downside. And minor resistance is at 154.69.
TLT:
Major level: 117.19
Minor level: 116.80
Minor level: 116.02 **
Major level: 115.63 <
Minor level: 115.24
Minor level: 114.45
Major level: 114.06
Minor level: 113.67
Minor level: 112.89
Major level: 112.50
Minor level: 112.11
The TLT closed at 115.88. It cleared the 115.63 level we were looking for. For the day, the TLT was up 82 cents.
Minor support is in the 115.04 to 115.23 area. Minor resistance is around 116.02.
GLD:
Major level: 118.75
Minor level: 117.97
Minor level: 116.41
Major level: 115.63
Minor level: 114.85 **
Minor level: 113.28
Major level: 112.50 <
Minor level: 111.72
Minor level: 110.16
Major level: 109.38
The GLD closed at 116.41. It closed exactly on the minor level. A close today above 116.41 would imply a move up to 118.75.
On the downside, 116.02 is minor support. 116.80 is minor resistance.
XLE:
Minor level: 72.66
Major level: 71.88
Minor level: 71.10
Minor level: 69.53
Major level: 68.75
Minor level: 67.97
Minor level: 66.41 **
Major level: 65.63 <
Minor level: 64.85 **
Minor level: 63.28
Major level: 62.50
The XLE closed at 67.58. A close today above 66.41 would suggest a move up to 68.75.
66.41 should offer minor support. 70.31 should be resistance.
FXY:
Major level: 85.94
Minor level: 85.75
Minor level: 85.36
Major level: 85.16
Minor level: 84.97
Minor level: 84.58 **
Major level: 84.38 <
Minor level: 84.18
Minor level: 83.79
Major level: 83.59
The FXY closed at 84.05. This now suggests that if the FXY closes under 84.18 today, it should test 83.59.
84.18 is minor resistance on the upside. And 84.38 should be strong resistance.
AAPL:
Minor level: 204.69
Minor level: 201.56
Major level: 200.00
Minor level: 198.44
Minor level: 195.31
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
Minor level: 176.56
Major level: 175.00
Apple closed $6.24 higher. It closed at 184.82.
If Apple can close above 182.81 today, it should test 187.50.
Look for 181.25 to offer support. If Apple does break under 181.25, look for a move to 178.13.
WATCH LIST:
Bullish Stocks: BIIB, GWW, ANTM, DPZ, BDX, CI, AMGN, MCD, CBRL, CLX, WDAY, ADP, JNJ, ADSK, UHS, VRSK, ESRX, UAL
Bearish Stocks: NOC, LLL, UTX, DGX, BG, PZZA, SLB, GIS, SIMO, EBIX
Be sure to check earnings release dates.
