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
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 $1.06
ET Long at $11.78
Premium Collected $0.35
ET Long at $7.50
Premium Collected $0.60
AGNC Long at $13.19
Premium Collected $1.45
MFA Long at $4.20
Premium Collected $0.40
OSTK Long at $17.64
Premium Collected - $2.25
Short May 29th - $18 Call @ $0.75
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MOS settled at just over the strike price at $12.09. The result is that the $12 call should have been exercised and your stock was sold at $12.00.
The result was a gain of 6.3% for 7 days. If you traded the suggested 500 share lot, the cash gain was $365.
Last week and the month of May closed out with the S & P 500 closing 14.59 points higher. The month closed out at 3,044.31.
The daily price bar had a range of 50.56 points. Slightly lower than the daily average true range, which is 63.75.
Friday was the second consecutive contraction.
The daily bar closed at 90% of the range of the daily bar. This does suggest that Friday's high of 3,049.17 should be violated before the low of 2,998.61.
And the support area from Friday's bar should be in the 3,024 to 3,045 area.
The key for Friday was that the low for the day, which was 2,998.61 held just above the midband on the daily chart. The midband is 2,987.35, so at this point, it should now be support.
The weekly price bar closed 88.86 points higher. The weekly price bar closed at 75.4% of the range of the bar. This also suggests that the high should be violated before the low.
The support area from last week's bar is in the 3,019 to 3,024 area.
The range for the week was 98.92 points. The weekly average true range is 168.21, so the weekly price bar had a contraction of 59%.
These contractions so suggest we will see an expansion.
The May monthly price bar also was bullish. It closed at 91.9% of the range of the monthly bar.
The midpoint of the monthly bar is 2,917.66 and should be support. Above this level, there should be support at 2,953.
The range for the month was 302 points. This was less than the prior three months, but it actually exceeded the monthly average true range, which is 263 points.
Pre open, the S & P is trading relatively flat.
CBRL reports tomorrow before the close. And ZM reports after the close.
Thursday, after the close we get earnings from WUBA, AVGO, DOCU, and WORK.
Here are the Key Levels for the Markets:
$VIX:
Minor level: 39.84
Minor level: 38.28
Major level: 37.50
Minor level: 36.72
Minor level: 35.16
Major level: 34.38
Minor level: 33.60
Minor level: 32.03
Major level: 31.25
Minor level: 30.47
Minor level: 28.91 **
Major level: 28.13 < Hit
Minor level: 27.35 **
Minor level: 25.78
Major level: 25.00
The VIX closed at 27.51. The VIX closed 1.08 points lower. The high for the day was 30.16, which was just under the minor 30.47 level.
To move higher, the VIX will need two closes above 28.91. And to move lower, the VIX will need two closes under 27.35.
The minor 28.91 level should still be resistance.
Technical resistance is around 28.50.
S & P 500:
Major level: 3,125.00
Minor level: 3,085.95
Minor level: 3,007.85 **
Major level: 2,968.80 <
Minor level: 2,929.75
Minor level: 2,851.65
Major level: 2,812.50
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30
Minor level: 2,617.25
Minor level: 2,539.06
Major level: 2,500.00
The S & P closed at 3,044.31. The suggests objective should be to 3,125. And 3,007.85 should offer support.
Support is also at the major 2,968 level. Watch the minor 3,047 level. If the S & P can clear this level, it should head higher.
There is technical support right around the 3,025 level.
QQQ:
Major level: 237.50
Minor level: 235.91
Minor level: 232.78 **
Major level: 231.22 <
Minor level: 229.66
Minor level: 226.56
Major level: 225.00
Minor level: 223.42
Minor level: 220.31
Major level: 218.75
Minor level: 217.19
Minor level: 214.06
Major level: 212.50
Minor level: 210.93
The QQQ closed at 233.36. This was the first close above 232.78. A close today above 232.78 would suggest that the QQQ should move up to 237.50.
The major 231.22 level should be support.
And the 230 area should be technical support.
And 231 should be support from yesterday's daily bar.
IWM:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
Minor level: 142.19 **
Minor level: 139.06
Major level: 137.50 <
Minor level: 135.94
Minor level: 132.81
Major level: 131.25
Minor level: 129.69
Minor level: 126.56
Major level: 125.00
Minor level: 123.44
Minor level: 120.31
Major level: 118.75
The IWM closed at 138.90. The low for the day was 136.41 before the IWM was able to reclaim the major 137.50 level.
At this point, the IWM will need two closes above 139.06 to move higher.
And the IWM reversed. The midband is 147.60 and the IWM is just under it. If the IWM cannot clear the midband, look for a pullback.
The 137 area should be technical support.
TLT:
Major level: 168.75
Minor level: 167.97
Minor level: 166.41
Major level: 165.63
Minor level: 164.85
Minor level: 163.28
Major level: 162.50 <
Minor level: 161.72 **
Minor level: 160.16
Major level: 159.38
Minor level: 158.60
Minor level: 157.03
Major level: 156.25
Minor level: 155.48
The TLT closed at 163.59. The TLT reversed and closed above 162.50.
If the TLT closes above 163.28 today, it should head up to 165.63.
The TLT is in a downtrend on the 60 minute chart. Resistance on that TLT timeframe is now around 166.
GLD:
Major level: 165.63
Minor level: 164.85
Minor level: 163.28
Major level: 162.50 <
Minor level: 161.72 **
Minor level: 160.16
Major level: 159.38
Minor level: 158.60
Minor level: 157.03
Major level: 156.25
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
The GLD closed at 162.91. The GLD managed to close above the major 162.50 level. Watch the minor 163.28 level on the upside.
163.28 should be resistance. If the GLD can clear 163.28, it should continue higher.
Technical support is around 161. Watch this level. If the GLD drops under this level it should head lower.
XLE:
Minor level: 47.65
Major level: 46.88
Minor level: 46.09
Minor level: 44.53
Major level: 43.75
Minor level: 42.97
Minor level: 41.41
Major level: 40.63 <
Minor level: 39.83
Minor level: 38.28 **
Major level: 37.50 <
Minor level: 36.72
Minor level: 35.15
Major level: 34.27
The XLE closed at 38.76. The objective for the XLE should still be up to 40.63.
The major 37.50 level should be support. The XLE needs to clear 39.83 to head higher.
Technical support should be around 39.
AAPL:
Major level: 325.00
Minor level: 321.88
Minor level: 315.63 **
Major level: 312.50 <
Minor level: 309.38
Minor level: 303.13
Major level: 300.00
Minor level: 296.88
Minor level: 290.63
Major level: 287.50
Minor level: 284.38
Minor level: 278.13
Major level: 275.00
Apple closed at 317.94. The objective for Apple should be up to 325.
The minor 315.63 level should be support.
Apple is right at the 318 technical support area. Watch this level today. If it can't hold it, Apple should drop.
If it does hold, look for a move higher.
WATCH LIST:
Bullish Stocks: GOOGL, TSLA, REGN, HUM, ASML, LULU, VRTX, LRCSm WST, COUP, ADSK, DG, SPLK, ZM, PYPL, DOCU, QLYS,
Bearish Stocks: ROKU, WUBA, FGEN, ARWR, ADSW, GOOS, MOMO
