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
COWN - Long at $14.95
VRX Long at $13.69
..........................................................................................
Yesterday closed out the month of May 2017. You should have also closed out a small profit on the DIS calls. Quite frankly, I would have preferred to hold those calls for a bit more, but the weekly options were carrying such a small premium, I felt it better to move on.
For the month, the S & P 500 closed to the upside 27.60 points. It closed out the month at 2,411.80.
And both the DOW and the NASD Composite closed out the month to the upside.
More importantly, all three major markets continued to close above their upper extreme bollinger bands on their respective monthly charts.
This again continues to show extreme strength. And tells us it is not time to consider shorting this market.
When we scale down to the shorter intra day timeframes, we see that both the 30 minute and 60 minutes remain in uptrend formations. This suggests we will see a rally.
Then when we look at our resistance levels, we were looking for 2,406.30 as a support level. And yesterday's low came in at 2,403.59, just 2.71 points under that level.
And we still have active objectives higher than the market. By the way, to invalidate the upside objective, the S & P 500 would need to close for two days under 2,406.30.
It looks like PANW should open almost 14% to the upside off their earnings. If we can get a decent entry, I will look to put FEYE back on.
Here are the Key Levels for the Markets:
$VIX:
Minor level: 14.45
Major level: 14.06
Minor level: 13.67
Minor level: 12.89
Major level: 12.50 <
Minor level: 12.11
Minor level: 11.33 **
Major level: 10.94
Minor level: 10.55
Minor level: 9.77
Major level: 9.38
I said yesterday to watch the 10.94 level. The VIX got as high as 11.30 before selling off to close at 10.41.
This now implies that if the VIX should close under 10.55 today, it could drop to 9.38. 10.16 should be a minor level to watch.
9.38 should be support.
$SPX:
Major level: 2,437.50
Minor level: 2,429.70
Minor level: 2,414.10 <
Major level: 2,406.30 ***
Minor level: 2,398.48
Minor level: 2,382.82
Major level: 2,375.00
Minor level: 2,367.20
Minor level: 2,351.60
Major level: 2,343.80
2,437.50 should be the objective. Minor support should be at 2,410.2 and 2,406.30.
2,421.90 could offer some resistance.
QQQ:
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
Major level: 134.38
The key level is 141.41 at the moment. The QQQ closed just 141.41 again. It closed at 141.29.
141.80 should be minor resistance. 141.02 should be minor support.
Yesterday's high was 141.84.
IWM:
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
Major level: 134.38
Minor level: 133.60
The IWM dropped as low as 134.64 before recovering to close at 136.32.?? A close today above 135.16 and the IWM should test 137.50.
135.94 should be support. And 138.28 could be minor resistance.
TLT:
Major level: 125.00 <
Minor level: 124.22 **
Minor level: 122.66
Major level: 121.88
Minor level: 121.09
Minor level: 119.53
Major level: 118.75
Minor level: 117.96
The TLT continues to inch up to the 125 level. Didn;t I say that yesterday It closed at 124.40.
I do expect resistance at 125. Clearing 125 would tell us the TLT should head considerably higher.
Daily trend remains bearish. 124.61 is minor resistance.
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
Major level: 112.50
The GLD closed at 120.62. 121.88 should be the objective. The mid band on the daily chart is 120.05 and the GLD got above it. This is a critical support level. If this holds as support, the GLD should head higher. If it can't, I expect a drop.
119.53 should now be minor support. 123.44 should be minor resistance.
XLE:
Major level: 75.00
Minor level: 74.22
Minor level: 72.66
Major level: 71.88
Minor level: 71.10
Minor level: 69.53
Major level: 68.75 <
Minor level: 67.97 **
Minor level: 66.41
Major level: 65.63
The XLE broke under 65.63, closing at 65.44. It now paves the way for a move down to 62.50.
65.43 is the minor level to watch.
FXY:
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 came within 39 cents of the 87.50 level, which we have been looking for. We should know today if it holds as resistance.
You know what should happen if it fails to clear 87.50.
AAPL:
Major levels for Apple are 162.50, 156.25, 150, 143.75, and 137.50
Apple sold off slightly, closing under 153.13, at 152.76. Support should be at 150 and 151.56. If it holds at either of those levels, it should make a run up to 156.
WATCH LIST:
Bullish Stocks: AMZN, GOOGL, MELI, LMT, AVGO, DPZ, GD, MMM, BIDU, BA, NVDA, ADBE, HON, CB, BABA, ACN, MA
Bearish Stocks: AZO, ORLY, UHS, CLB, DLTR, MNRO, SIG, FLR, EAT, NLSN, BBBY
Be sure to check earnings release dates.