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.
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The S & P 500 ended the day closing above 3,000 for the first time. It ended the day at 3,005.47.
A close above 3,000 should not be a shock as the current objective for the S & P is up to 3,125.
So, for the day, the S & P closed 20.44 point higher. And we were looking for an expansion and though the S & P had a range greater than Monday, it still was not even the daily average true range.
The range yesterday was 17.34 and the average true range is 21.76.
The low for the day was 2,988.56, which was above the daily support level of 2,983 to 2,985.
For the day, the S & P closed at 98% of the range of the daily bar. This does suggest that yesterday's high will be violated beofre the low.
And the support area from yesterday daily bar is in the 2,997 to 3,000 area.
At this point, I do expect support at the 2,998 resistance level.
Having said this, the main issue at the moment is that the VIX is back to major 12.50 level. Yesterday's low came to 12.55, so it is within 5 cents of the key support level.
We need to be cognizant that the VIX could bounce here.
The weekly support area from last week's weekly bar is in the 2,995 to 2,997 area.
For the market to move higher, it needs to clear this area.
And pre open, the S & P is trading about 7 points lower. This projects to an open right around the weekly support level. Watch to see if this can hold, if it can't look for a move lower.
And with a resistance line right at 2,998, this area should be a key area for today.
CMG reported last night and is trading about $23 higher. And SNAP is getting a strong push as well. I will be looking to adjust the short call position by the end of the week.
Boeing reports today 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 12.61 yesterday. For the day, the VIX closed 0.92 points to the downside. And the VIX got as high at 13.52 before dropping almost a point.
The 14.06 level should offer resistance. 12.89 is also minor resistance.
Watch to see if the VIX breaks under 12.50. If it does, the market should continue higher. But, we are on alert that a bounce could happen in the VIX.
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
At this point, there is minor support at 2,993.20. And there is also a support level at 2,998.
Watch these levels today because the market should open right around the 2,998 level.
A break under that level and I would expect a drop to 2,993 and support to come in.
Bias is still to the upside.
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 193.79. The QQQ closed back above the major 193.75 level.
At this point, 192.19 should offer support. And the next level to the upside is 194.53.
192.58 should also be a minor support level and 192.19 as well. On the upside, look for possible resistance at 194.53.
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 154.70. The IWM continues to trade around the midband on its daily chart. Yesterday was the 17th day it traded around the band.
The midband is now 153.96, so the IWM is back above the midband and the minor 154.69 level. Watch to see if the IWM can hold the midband. And if it can hold the 154.69 level, it should head up to 156.25.
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 131.22. To head lower, the TLT will need two closes under 130.47.
130.86 is a minor support level. If the TLT breaks under this level, look for a move down to the 129 area.
131.64 and 131.25 should still offer support. If this level holds, look for a move up to 132.81.
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 133.69. It is still just under the upper band, which is 135.21.
Starting to move away from the upper band.
132.81 is minor support. Biased for a move up to 137, but it needs to clear the upper band again. And if the GLD has two closes under 133.60, look for it to continue lower.
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 63.22. The upside is still to 65.63. The XLE did reclaim the 62.50 level. It should still be support. But, it will need to clear 63.28.
Minor support is at 62.89. If the XLE can hold this level, it should continue up to 64.50
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 208.84. It ended closing 1.62 higher. Apple should test 212.50.
209.38 is a minor resistance level. If Apple can clear this level, it should continue up to the 212.50 level.
The 206.25 level should continue to 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.
