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 $0.80
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The S & P bounced to the upside after the brief pullback. The market gapped up at the open 10.30 points.
As I mentioned yesterday, with the close percentage on Tuesday hitting 93%, the odds were that Tuesday's high would be violated before the low and that price expectation happened right off the open.
After the open,the market continued higher for about another 16 points, hitting a high of 3,119.38. The low of course was made right off the open.
The market finally settled at 3,112.76. And the close percentage for the day ended up at 61% of the daily price bar.
So, the odds are still biased for the high to be violated before the low.
Support from yesterday's daily price bar should be in the 3,108 to 3,110 area.
On the upside, the weekly support area, which has been violated, should now offer resistance. That area is in the 3,130 to 3,136 area.
The other key area to watch today should be around 3,124. This is a resistance level on a short term intra day chart.
Pre open, the S & P is trading about 7 points higher.
This would project an open about right around yesterday's high, which was 3,119.38. Watch to see if the market can hold this level.
If it can't and the market pulls back, the close should be support, which is 3,112.76.
RH reported last night and is trading about $5 higher. FIVE reported and is trading about $8 higher.
DOCU and ULTA report today 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 closed out at 14.80 yesterday. It sold off over 7%, after the two-day spike.
With a close under 14.85, this now suggests that if the VIX closes under 14.85 today, it would indicate a retest of 12.50 again.
Technical support is right around the 13.30 area, which is right around the 13.28 minor level, which should now be support.
SPX:
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
Minor level: 2,695.35
Major level: 2,656.30
The S & P closed at 3,112.76. A close above the minor 3,007.85 level and the S & P should retest the 3,125 level.
The minor levels to watch today are 3,105 on the downside and 3,115 on the upside.
Watch the 3,124 area for possible resistance.
QQQ:
Major level: 206.26
Minor level: 205.48
Minor level: 203.91
Major level: 203.13 HIT
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 203.43. With the QQQ reclaiming the major 203.13 level, the minor 202.35 level should be support.
Watch to see if the QQQ can clear 203.91. If it can close above this level for two days, it should test 206.26.
203.50 is a minor technical reistance level. If the QQQ clears this level, it should head higher.
IWM:
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
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 160.78. The IWM did trade above the 160.94 level, but could not close above it.
Watch this level again today. It needs to clear this level to head higher.
Minor technical resistance is at 161.20. If the IWM clears this level, look for a move higher.
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
Minor level: 135.84
Minor level: 132.81
Major level: 131.25
The TLT closed at 139.80. The TLT closed under the minor 139.85 level. A close today under this level and the TLT should drop to 137.
Technical support is around 138 and technical resistance is at 140.50.
Watch for a breakdown or breakout.
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 138.92. The GLD managed to close above the minor 139.85 level. Watch the 140.63 level on the upside. The GLD needs to clears it to head higher.
Technical resistance is at 139. Watch this level today.
The key level is 134.38 on the downside. If the GLD has two closes under this level, it could drop to 125.
Short term, there is technical resistance at 139, which was right were the GLD rallied to yesterday.
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 58.88. The XLE is holding the minor 58.60 level. Watch to see if it can take out 59.38 today.
If it can, it should head higher. If not, look for a pullback.
57.50 should now be support. And the 59.25 area should offer technical resistance. It will need to clear this area to head higher.
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 261.74. Apple needs to clear 261 to head higher and it did.
Apple will need to hold the 261.72 level to head hgher. It is support unless it is violated.
Technical resistance should be in the 264 area.
WATCH LIST:
Bullish Stocks: AMZN, LMT, ROP, HUM, SHOP, NTES, ADBE, FLT, DPZ, BDX, LULU, VRTX, NVDA, FB, BABA, RH, PEN, V, DECK, ROKU, COUP
Bearish Stocks: AAP, TAP, IRBT, FL, CHL, OXY, IRM
Be sure to check earnings release dates.
