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
FEYE Short Jan 17th - $19 Call @ $0.26
DBX Long at $17.18
DBX Short Jan 31st-$17 call @ $0.70
X Long at $11.33
X Short Jan 10th - $11.50 call @ $0.35
NET Long at $17.09
NET Short Jan 17th - $17.50 call @ $0.55
FDX Long Jan 17th - $150 Put for $3.05
FDX Short Jan 17th - $145 Put for $1.37
DG Long Jan 31st - $152.50 Call @ $2.90
DG Short Jan 31st - $155.00 Call @ $1.70
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There is one call position that expires today and that is the short $11.50 call on X. Let the calls expire and based on how X is trading, I will suggest you sell another round of calls.
I also suggested a call debit spread on DG. The suggestion was to buy the Jan 31st - $152.50 call and sell the $155 call against it.
The market continues to climb to the 3,281.20 objective. The S & P 500 closed at 3,274.70 or within 7 points of the objective.
The day closed out 21.65 points higher. Because of the bullish gap, the intraday range was only 11.91 points.
The daily bar closed out at 93% of the range of the bar, which of course suggests that the high should be violated before the low.
The futures are trading about 8 points higher pre open. This projects to an open around 3,282.70 or about 1.50 points above the objective we have been calling for.
Assuming at open at this level, support should be at yesterday's high, which was 3,275.58.
Watch today to see if the S & P can make a run above the 3,281.20 level.
In looking at the weekly price bar, the weekly range through yesterday was 60.94 points. This is already greater than the weekly average true range which is 61.41 points.
And through yesterday, the close is at 99% of the weekly bar. This is showing strong price action on the weekly charts.
If the market does pull back today, I would expect the market to close above 3,258.
If the market keeps running, look for a move up to 3,290. This should be the next upside objective above 3,281.20.
The bullish percent index now has a reading of over 80.0%. Yesterday, it registered 80.40 %.
This is telling us that there is extreme bullishness in the market.
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 Friday at 12.54. Yesterday's low came to within 3 cents of the 12.50 target.
This is now at the long term major support level. Watch this level for support. If it does break under 12.50, watch the next minor level, which is 11.72.
13.28 should be resistance. 13.55 is technical resistance.
SPX:
Major level: 3,281.20 <
Minor level: 3,242.15 **
Minor level: 3,164.08
Major level: 3,125.00 <
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
The S & P closed at 3,274.70. Look for the major 3,281.20 level to be tested today based on the pre market trading.
Support should be at 3,275 if the market does pull back.
Watch how the market reacts at the objective.
Support from yesterday's daily bar is in the 3,270 area.
The bullish percent index remains overbought, but at this point, we have not had a spike in the VIX. Technicals remain bullish for the market.
Technical support is still at 3,234.
QQQ:
Major level: 221.91
Minor level: 221.13
Minor level: 219.56 **
Major level: 218.78 HIT!
Minor level: 218.00
Minor level: 216.43
Major level: 215.65
Minor level: 214.87
Minor level: 213.30
Major level: 212.50
Minor level: 211.74
Minor level: 210.17
Major level: 209.39
The QQQ closed at 218.99. The QQQ hit the 218.78 objective. The next minor level is 219.56.
Support should now be at 218.00. And technical support is right around 218 as well.
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 165.51. The objective for the IWM should be up to 168.75.
The 164.06 level should offer support.
The 165 area should offer technical support. This level should hold.
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 137.22. Watch to see if the TLT can clear the 137.50 level.
There is technical resistance at the 137. The TLT will need to clear this level to move higher.
Short term charts remain bearish.
GLD:
Major level: 150.00
Minor level: 149.22
Minor level: 147.67 **
Major level: 146.89 Hit
Minor level: 146.11 **
Minor level: 144.54
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
The GLD closed at 146.03. 147.67 should be resistance. And if the GLD closes under 146.11 today, it should drop to 143.
It will need to move back above 146.11 to move higher.
We expected a pullback based on the GLD being overbought short term.
The upper band on the 60 is 147.79 and the GLD broke under it. Expect a retest and watch to see if the GLD can clear it. If it can't, look for the GLD to continue lower.
137.50 should be strong support. So if the GLD does break under it, I would expect it to head lower.
The key level is 134.38 on the downside. If the GLD has two closes under this level, it could drop to 125.
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 60.15. The objective should be up to 62.50. But, at this point, it will need to clear 60.16.
Watch for support at the 59.38 level.
Technical support is still around 59.
AAPL:
Major level: 312.50
Minor level: 309.38
Minor level: 303.13
Major level: 300.00 Hit
Minor level: 296.88 **
Minor level: 290.63
Major level: 287.50
Minor level: 284.38
Minor level: 278.13
Major level: 275.00
Apple continues its torrid pace and closed at 309.63. The next level is 312.50.
And yesterday, Apple closed above the upper band on its daily chart. That level is 309.63. This should now offer support.
303.13 should offer support. And minor support is at 290.63.
The 295 area should offer technical support.
WATCH LIST:
Bullish Stocks: TSLA, NOC, ROP, ADBE, NTES, MA, AAPL, LRCX, NOW, GS, RTN, BABA, LHX, FB, MCD, DE, COUP, CB
Bearish Stocks: ALXN, TSCO, SQ, CLB, UFS, QGEN, MAC, BEN
Be sure to check earnings release dates.
