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 - $1.78
THC Long at $14.63
Short Dec $15.50 call @ $0.30
Premium Collected - $1.70
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The S & P 500 reversed yesterday and closed 7.71 points to the upside. It closed at 2,636.98.
Though we were looking for a retest of the 2,617 level, the market only got to a low of 2,626.53. And that happened right at the open.
The bottom came right in the area of support from last week's weekly price bar, which was the 2,622 to 2,628 area. This again demonstrates why it is important to be mindful of these support areas. This low also happens to be right at the minor 2,626.98 level.
So there was a lot of confluence right at the low yesterday. Once again, it is nice to know these areas in advance.
We also know that the VIX is helpful in determining market direction.
As I mentioned yesterday, we had two consecutive days where both the S & P 500 and the VIX closed to the upside. This is a divergence that tells us that direction could change.
The high on the VIX yesterday happened to be 11.32, which one cent under the minor 11.33 level. As the VIX sold off, the logic was to stay long the market.
Pre open, the S & P 500 is trading almost 10 points to the upside after the Non Farm Payroll report. This would imply an open around 2,647.
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
A retest of 9.38 appears highly probably. Look for resistance at 10.16.
$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
With an anticipated open above 2,636.70, look for support at this level.
Minor resistance should be in the 2,648.90 area. If the market clears this level, expect it to move higher.
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 154.02. A close above 153.91 and the QQQ should move up to 156.25.
153.52 should still be support. And now 153.13 should offer support.
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
Yesterday's low was 2 cents above the 150 support level. And the IWM closed at 151.27. A close above 150.78 and the IWM should test 153.13.
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
After hitting the 128.13 target, the TLT sold off 1.00 yesterday. It closed at 126.68.
126.56 is a minor support level and a bounce up to 127.35 could occur this moring.
A close under 127.35 and the TLT should test 125.
GLD:
Minor level: 125.78
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
The GLD closed at 118.49, taking out the 118.75 objective.
A bounce could happen, but expect resistance at the 121.88 level.
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 68.65, just 10 cents under the major 68.75 level. If the XLE can clear this level, I do expect a move higher.
The minor 68.36 support level held yesterday. Expect it to hold today.
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 84.86. A retest of 84.38 is likely.
84.38 should be support. So, watch this level today. A break under this level would tell us the FXY is heading lower.
AAPL:
Major levels for Apple are 175, 171.88, 165.63, 162.50, 159.38, and 156.25.
"Watch for support at 168.75." From yesterday. Apple closed at 169.32. Expect shpport at 168.75.
A run up to 171.88 is likely.
WATCH LIST:
Bullish Stocks: BA, HUM, MMM, BDX, ANTM, LLL, COST, URI, HON, CME, DE, MCK, CAT, CBOE
Bearish Stocks: TAP, WIX, OTEX, OFC, MDCO, AKR, CLI, ERJ, INN
Be sure to check earnings release dates
