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 - $3.47
Short July 26th - $14.50 Call @ $0.84
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 add the $14.50 call on SNAP that expires this coming Friday. With earnings this afternoon, the option premium has been inflated and I felt it best to take advantage of that fact.
The market ended up closing 8.42 points higher. It closed out the day at 2,985.03.
The expectation was that Friday's low of 2,975.86 would be taken out before the high of 3,006.02. As it turned out the S & P tested the low and could not take it out.
If went to a low of 2,976.65 or about one point above the prior low and moved up after that. If the low is expected to be taken out and it is not, then the market should turn and test the high.
The high fell short of Friday's high. The high for the day was 2,990.71 and was about 16 points short of Friday's high of 3,006.02.
So, for the day, the S & P 500 ended up with an inside day and a contraction. It was also a doji day where the close was approximately the open.
The range for the day ended up at 14.06 as compared with the daily average true range of 21.83 points. This was 64% of the average.
This also suggests that we will see an expansion in the market.
For today, the 2,983 to 2,985 area should be the key level to watch. If the market can get above it, expect it to offer support. It's resistance if the market falls under it.
Pre open, the S & P 500 is trading about 9 points higher, so watch the area I mentioned above.
Earnings really begin to heat with CMG reporting after the close today.
Boeing reports Wednesday, before the open. And Wednesday after the close, we get earnings from FB, TSLA and PYPL.
And Thursday after the close, we get earnings from AMZN.
As you can see, there are a lot of high profile companies reporting this week.
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 13.57 on Friday. For the day, the VIX closed 0.88 points to the downside. And the VIX got as high at 14.60 before dropping almost a point.
The 14.85 level still acted as resistance and at this point, if the VIX closed under that level today, a retest of 12.50 would be the expectation.
13.28 is a minor support level on the downside. And 14.06 is minor resistance on the upside.
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 S & P is still holding above the 2,929.73 level and that would be the level that would indicate a shift to the downside.
2,976.10 is minor support. And under that level, the major 2,968.80 level should be support.
Assuming the S & P opens above 2,988.30, look for support at this level as well on a pullback.
QQQ:
Major level: 196.88
Minor level: 196.10
Minor level: 194.53
Major level: 193.75 <
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 192.53. 192.19 should still offer support.
191.80 should be a minor support level. And 192.19 as well. Assuming a higher open, look for these levels to act as support on a pullback.
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 153.68. This suggests that the IWM should drop to 150. But, support should come in at 153.13.
Also, the IWM continues to trade around the midband on its daily chart. Yesterday was the 16th day it traded around the band.
The midband is now 154.01.
At this point, the IWM has not broken out, nor has it broken down.
It will do one or the other at some point. Not an exciting market until one of these scenarios happen.
154.69 should be resistance.
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 131.94. It will still need two closes above 132.03 to head higher.
131.64 and 131.25 should still offer support. If this level holds, look for a move up to 132.81.
If the TLT breaks under 131.64, look for it to head lower.
GLD:
Major level: 137.50
Minor level: 136.72
Minor level: 135.16 **
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
The GLD closed at 134.45. It is still just under the upper band, which is 135.00.
132.81 is minor support. Biased for a move up to 137, but it needs to clear the upper band again.
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 63.05. The upside is still to 65.63. The XLE did reclaim the 62.50 level. It should now be support.
Minor support is at 62.11. If the XLE can clear 62.89, it should move higher. And now that it is above it, it should be support.
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 207.22. It ended closing 4.63 higher. With a close today above 203.13, look for Apple to test 212.50.
If Apple clears 207.81, look for it to head higher.
206.25 should be support.
WATCH LIST:
Bullish Stocks: ULTA, SHOP, AVGO, COST, PANW, MCD, LRCX, OLED, EW, VMW, CLX, ITW, IBM, HSY, KLAC, XLNX, YUM
Bearish Stocks: DPZ, LLY, EA, WTFC, NDC, IBKR, THC, VST, CC, PXD
Be sure to check earnings release dates.
