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
AMC Long at $15.27
Premium Collected - $2.80
Short March $16 call @ $0.55
UNIT Long at $17.00
Premium Collected - $0.35
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Yesterday, you should have added the short March call on the AMC long position. If you followed all the alerts on AMC, you now have collected $2.80 per share by selling call options.
Yesterday, market rallied strong. For the day, the S & P 500 closed 32.30 points to the upside. It closed at 2,779.60.
You will recognize that this is the first close over 2,753.93. This now implies that if the S & P 500 closes above 2,753.93 today, the objective becomes 2,812.50.
And the 2,753.93 level should now offer support for the market. This is an important level for the S & P 500 because not only is it the minor support level, but the midband on the 60 minute chart. The midband is 2,754.67 and price is trading above it. So, we would expect support at that level on a retest.
The S & P 500 is approaching the upper band again on its weekly price chart. The upper band is 2,809.06. This is a level to watch, to see if the market can clear this level. A failure and I would expect another pullback.
As a point of reference, the DOW has cleared its upper band on its weekly chart. The NASD Composite had not. It closed yesterday ay 7,421.46 and the upper band in 7,436.70.
Support from yesterday's daily price bar is in the 2,767 area.
The 60 minute chart for the S & P 500 still remains in a downtrend, but the short term 30 minute chart has crossed into an uptrend. This implies that short term momentum is shifting to the upside.
Pre open, the S & P 500 is trading about 3 points to the downside. Follow the support levels I have outlined for long opportunities.
PANW reported last night and is trading about $9 higher based on their report.
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
Minor level: 10.94
The VIX closed at 15.85. The VIX closed again to the downside and it approaching the minor 15.63 level.
Watch to see if 15.63 is violated. If it is, it should continue lower.
Minor resistance should be at 17.19.
$SPX:
Major level: 2,812.50
Minor level: 2,792.98
Minor level: 2,753.93 **
Major level: 2,734.40 <
Minor level: 2,714.88
Minor level: 2,675.83
Major level: 2,656.30
Minor level: 2,636.75
2,744.10 should continue to be a minor support level. A close today above 2,753.93 and the objective should be to the 2,812.50 level.
2,763.70 could also offer minor 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 170.40. A close today above 170.31 and the QQQ should run to 175.
169.53 should offer minor support.
IWM:
Minor level: 157.03
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
The IWM closed at 154.99. A close today above 153.91 and the IWM should test 156.25.
153.91 should offer support. And 154.69 should as well.
TLT:
Minor level: 120.70
Major level: 120.31
Minor level: 119.92
Minor level: 119.14
Major level: 118.75 <
Minor level: 118.36
Minor level: 117.58
Major level: 117.19
Minor level: 116.80
Minor level: 116.02
Major level: 115.63
The TLT closed at 118.17. The high for the day was 118.91. Watch the 118.75 level. It should offer resistance.
The TLT may bounce before heading lower.
GLD:
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.35
Minor level: 125.78 **
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
The GLD closed at 126.45. I would expect a test 128.13. However, 126.56 is a minor resistance level that the GLD will need to clear before heading higher. Watch this level today.
125 should be strong support. A break under this level tells us the GLD should head lower. And if the GLD can clear 128.13, I would expect it to head higher.
XLE:
Minor level: 76.95
Major level: 76.56
Minor level: 76.17
Minor level: 75.39
Major level: 75.00
Minor level: 74.22
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
The XLE closed at 69.21. To move higher, the XLe will need two closes above 69.53.
The XLE will need to clear 69.53 to head higher. Support should be at 68.75.
FXY:
Major level: 91.41
Minor level: 91.22
Minor level: 90.83
Major level: 89.06 <
Minor level: 88.87
Minor level: 88.48
Major level: 88.28
Minor level: 88.09
Minor level: 87.70
Major level: 87.50
Minor level: 87.31
Minor level: 86.92
The FXY closed at 89.53. It closed back inside the upper band, which is 89.83.
A break under 89.55 and the FXY should head lower.
AAPL:
Major level: 181.25
Minor level: 180.47
Minor level: 178.91**
Major level: 178.13
Minor level: 177.35
Minor level: 175.78
Major level: 175.00
Minor level: 174.22
Minor level: 172.66
Major level: 171.88
Apple closed at 178.97, taking out the 178.13 level. A close today above 178.91 and Apple should test 181.25.
The 178.13 should now offer support.
WATCH LIST:
Bullish Stocks: AMZN, BA, LLL, ADBE, CTAS, PANW, FFIV, RHT, JPM, CRM, GPN, ZTS, SFLY, CTSH, PTC, MSFT,
Bearish Stocks: REGN, MLM, AGN, ZBH, KMB, DGX, HSY, CL, KHC, MMP, PZZA, HCN, TUP
Be sure to check earnings release dates.
