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
DYN Long at $12.55
Premium Collected $0.48
APA Long Oct $47.50 Call at $3.45
APA Short Oct $52.50 Call at $1.10
SBH Long at $19.20
SBH Short July $20 Call at $0.30
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Thursday ended with a narrow range day. And then Friday, the market expanded and had a range of 16.85 points.
The S & P 500 ended up closing at 2,459.27, up 11.44 points on the day.
This is significant because it closed above the 2,453.12 upside level. This is the second time that the S & P 500 has closed above that level. The last time it did, it failed and could not close above it the next day.
Can it do this time?
We we will find out today, that is for certain!
As you know, a close today above 2,453.12 would confirm a move up to 2,500. And at this point, the market is within 40 points of it.
I know it seemed like many points ago when I mentioned that I felt the ultimate objective for this market was to 2,500. But, now that we are within reach of it, it certainly does not seem far fetched.
The short term 30 minute chart has moved into an uptrend. This shows that shorter term momentum has turned positive. However, price is at the upper band levels on both the 30 and 60 minute charts. So, a pullback would not be unexpected. The question is will it hold up 2,453.12?
The weekly price bar for the S & P 500 was decidedly bullish. Support levels from last week's bar is in the 2,439 to 2,442 area.
This weeks begins the new earnings season. This afternoon we will hear from NFLX. Tomorrow morning we get GS. BAC reports Wednesday morning.
And MS reports Thursday morning.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.84
Minor level: 13.28
Major level: 12.50
Minor level: 11.72 <
Minor level: 10.15
Major level: 9.38
The VIX closed within reach of the 9.38 objective. It closed at 9.61. The high for the day was 10.14, just two cents under the 10.16, which I mentioned should be resistance.
The question now is does the VIX take out 9.38.?
I don't know, but you have to watch this level. This would be historic if the VIX closed for two days under 9.38. If it can, a move to 3 would be possible.
8.59 should be minor support. And 9.77 is minor resistance.
$SPX:
Major level: 2,500.00
Minor level: 2,484.38
Minor level: 2,453.12 <
Major level: 2,437.50 **
Minor level: 2,421.88
Minor level: 2,390.62
Major level: 2,375.00
Minor level: 2,359.38
Minor level: 2,328.12
Major level: 2,312.50
You know the implications of the 2,453.12 level. No need to repeat here.
Minor support should be at 2,445.30.
2,468 could offer resistance.
QQQ:
Major level: 143.75
Minor level: 142.18 <
Minor level: 139.06 ***
Major level: 137.50
Minor level: 135.94
Minor level: 132.81
Major level: 131.25
The QQQ closed just six cents under 142.18. The 143.75 level is the objective. Minor support is at 141.41.
142.97 is minor resistance. If this level is cleared, look for 143.75 to be hit.
IWM:
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
143.75 should be the objective. 141.02 should now be minor support.
If 141.02 cannot hold, I would expect 140.63 to. 142.97 is minor resistance.
TLT:
Major level: 125.00
Minor level: 124.61
Minor level: 123.83
Major level: 123.44 <<
Minor level: 123.03
Minor level: 122.21
Major level: 121.88
The TLT would have to close above 123.83 to head up. Watch how the TLT reacts around the 123.44 level.
A break under 123.44 would imply a move down to 120.
123.63 is minor resistance. And 122.85 is minor support.
GLD:
Minor level: 122.66
Major level: 121.88
Minor level: 120.32
Minor level: 119.53
Major level: 118.75
Minor level: 117.97
Minor level: 116.41 **
Major level: 115.63 <<
Minor level: 114.85
Minor level: 113.28
A close today above 116.41 and the GLD should test 118.75.
118.75 should be major resistance. 116.60 should be minor support.
XLE:
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
Minor level: 61.72
The XLE came within 11 cents of the 65.63 objective.
Minor support is at 65.04 and 64.84. Minor resistance is at 65.43.
FXY:
Minor level: 87.89
Major level: 87.50
Minor level: 87.11
Minor level: 86.33
Major level: 85.94 <
Minor level: 85.55
Minor level: 84.77
Major level: 84.38
Minor level: 83.60
Minor level: 83.20
Major level: 82.81
The FXY is close to the 85.94 level. I would expect this level to be strong resistance. Watch to see if if fails here.
85.74 is minor resistance. And 85.25 should be minor support.
AAPL:
Major levels for Apple are 153.13, 150, 146.88 143.75, and 140.63.
Apple came within one point of the 150 objective. 151.56 should be minor resistance. And expect 147.66 to offer support on the downside.
Short term momentum is shifting to the upside.
WATCH LIST:
Bullish Stocks: PCLN, LMT, NOC, HUM, GS< FDX, BDX, BA, STZ, AMGN, RTN, LLL, RTN, CMI, FB, AET, RHT, WDC, SMG, KSU, AXP, DD
Bearish Stocks: JACK, PAYX, ROST, SIMO, EAT, BGS, RBA, SCG
Be sure to check earnings release dates.
