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
SNAP Long at $14.54
Total Premium Collected - $2.63
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
WDC Long July 19th - $52.50 Call @ $1.34
WDC Short July 19th - $55.00 Call @ $0.34
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Yesterday, I suggested you buy back to the short $15.50 call on SNAP. With the option losing just over 1/2 its value, I felt it's better to book the profit. It did reduce the total amount of premium collected on this position to $2.63 per share, from $2.85 per share.
But, it frees the stock up to sell another round of options.
I also suggested a short term $2.50 wide debit spread on WDC. Risk should have been limited to .5% of the portfolio.
The market had some selling pressure yesterday. For the day, the S & P 500 closed 10.26 points lower. If closed out the day at 3,004.04.
The was about 3 points below the upside confirming line of 3,007.85.
But, with two closes above the 3,007.85 level, we should still be biased to the upside and ultimately to an objective of 3,125.
Because we have confirmed a target up to the next major level, it does not mean we will not get some selling pressure. Especially with the VIX down to the all time historic low.
In fact, at this point, a move lower should be an opportunity to buy.
And with short term charts still bullish, we have further verification that the uptrend is still in place.
The key resistance level from yesterday's daily bar is right at 3,008.
If the market can clear this level, it should offer support. If it can't, I would expect resistance.
The weekly support level should still be valid. The upper end of the support level is 2,997. And if that is violated, the next level would be 2,998.
So, there should still be strong support under the market.
Once again, the range for the day was less than the daily average true range. The average is now 21.61 points and yesterday's range was 13.87 points or 64% of the average.
I would be more concerned if the selling pressure exceeded the daily average.
Pre open the S & P 500 is trading relatively flat.
We are starting to get into earnings season. This afternoon, we will get earnings from NFLX. And we will hear from IBM and URI.
Thursday after the close, we will get earnings from MSFT.
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
The VIX closed at 12.88 yesterday. The VIX moved up 20 cents.
The high for the day was 13.14 or 14 cents under the minor 13.28 resistance level I mentioned yesterday. This level should still offer resistance. And I don't see the VIX moving up until it can close above this level.
There is also minor resistance at 12.89 and the VIX closed 1 cent under. If the VIX does break through 12.89, look for a move up to 13.28 and resistance to come in.
SPX:
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
Minor level: 2,695.35
Major level: 2,656.30
The objective is still up to 3,125. I mentioned the minor 3,002.90 level and yesterday's low went to 3,001.15 before recovering to close above it.
This minor level should still offer support.
If the S & P can reclaim 3,007.85, it should then be support as well.
On the upside, there is minor resistance at 3,027.30. And there is resistance a 3,051.80.
QQQ:
Major level: 196.88
Minor level: 196.10
Minor level: 194.53 **
Major level: 193.75 < Hit
Minor level: 192.19
Minor level: 189.06
Major level: 187.50
Minor level: 185.94
Minor level: 182.81
Major level: 181.25
Minor level: 179.69
The QQQ closed at 193.15. The QQQ could not close above 194.53, so it still needs two closes above it to move up to 196.88.
The next minor level 194.53 on the upside is 194.53. Two closes above this level and the objective becomes 196.88.
Minor support should be at 192.97 and 192.19. There is technical support at the 192 area as well.
IWM:
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 155.24. Yesterday's high came within 5 cents above the major 156.25 level.
To head lower, the IWM will need two closes under 154.69.
And the IWM continues to hold above the midband, which is now 154.19.
Short term trends remain bullish. So, buying against support is the best strategy.
Technical support is at 154.
TLT:
Major level: 134.38
Minor level: 133.60
Minor level: 132.03
Major level: 131.25
Minor level: 130.47 **
Minor level: 128.91
Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
The TLT closed at 130.58. By reclaiming 130.47, the TLT should continue to bounce.
If the TLT can regain 131.25, it should head higher. If it can't, look for a drop. But, 131.25 should be resistance.
Technical resistance is at 132.
GLD:
Major level: 134.48
Minor level: 133.60 **
Minor level: 132.03
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
The GLD closed at 132.40. It was down 1.13 on the day. It is starting to push away from the upper band.
With a close today under 133.6, the GLD should drop to 131.25.
131.25 should offer strong support.
132.50 is technical support and the GLD violated it. Watch this level today.
XLE:
Major level: 65.63 <
Minor level: 64.85
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
The XLE closed at 63.18. The upside is still to 65.63. And the major 62.50 level should still offer support.
62.89 should be minor support. Watch this level today.
62 is technical support.
Short term charts remain bullish.
AAPL:
Major level: 212.50
Minor level: 209.38
Minor level: 203.13 **
Major level: 200.00 <
Minor level: 196.88
Minor level: 190.63
Major level: 187.50
Minor level: 184.38
Minor level: 178.13
Major level: 175.00
Apple closed at 204.50. The objective for Apple should still be to the 212.50 level.
206.25 could offer some resistance, so if Apple clears this level, expect it to move higher.
203.13 should offer strong support. And 202.50 is technical support.
Short term charts remain bullish.
WATCH LIST:
Bullish Stocks: NFLX, LMT, ADBE, FLT, MA, COST, APD, MLM, VRSN, MCD, HD, FB, OLED, HON, V, BABA, DIS, MSFT, WYNN
Bearish Stocks: RTN, USNA, SPR, KEX, NUS, DIS, TUP
Be sure to check earnings release dates.
