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 $1.05
MFA Short June $4 Call @ $0.65
CLVS Long at $7.31
CLVS Short June 12th - $7.50 call @ $0.25
MKC Long June 19th - $175 call @ $2.30
MKC Short June 19th - $180 call @ $0.80
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Yesterday, I suggested you sell call options on the MFA position. The alert suggested you sell the $4 call that expires on June 19th. These are the monthly options that expire next week. This brings the total call premium collected on the position to $1.05 per share.
Yesterday the S & P 500 took a pause after making a strong push higher since taking out the midband on the daily chart.
For the day, the S & P closed 25.21 points lower. The day closed out at 3,207.18.
The market gapped lower at the open and dropped to a low of 3,193.11 before finding support and putting in a rally.
The low took out Monday's low by 3 points.
After finding support at the low, the S & P managed to rally to a high of 3,222.71. From the high, the market sold off into the close which was 3,207.18.
The market did move under the minor 3,203.10 support level and managed to close above it.
I am still biased for more movement to the upside and the objective of 3,281.
But clearly, the VIX is making a little push off the midband on its daily chart and if the VIX does continue higher, we may see more profit-taking in the market.
There is a technical resistance level on the VIX right at 28.75, which is about one point above the high the VIX made yesterday.
If the VIX cannot clear this level, I would expect it to start to head lower and we should see a push up in the market.
Having said that, the S & P daily price bar closed at 48% of the range of the bar. This is a relatively neutral bias.
The support area from yesterday's daily bar is in the 3,207 to 3,210 area.
And yesterday's close of 3,207.18 is right at the lower end of the support area.
If the S & P can clear the upper level, it would then be support. If it can't, it should be resistance.
Pre open, the S & P is trading about 3 points higher or right around the upper end of the support area.
Watch for the scenarios I laid out above.
FIVE reported last night and is trading about $11.60 higher pre open.
Thursday, after the close we get earnings from ADBE and LULU.
Here are the Key Levels for the Markets:
$VIX:
Minor level: 33.60
Minor level: 32.03
Major level: 31.25
Minor level: 30.47
Minor level: 28.91
Major level: 28.13
Minor level: 27.35
Minor level: 25.78
Major level: 25.00
Minor level: 24.22 **
Minor level: 22.66
Major level: 21.88
The VIX closed at 27.57. The VIX closed 1.76 points higher.
The objective for the VIX should be to the 28.13 level.
Support should be at 25. Watch to see if the VIX can clear the 28.13 level.
And watch the technical resistance area around 28.73.
S & P 500:
Major level: 3,281.20 <
Minor level: 3,242.15
Minor level: 3,164.00 **
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
The S & P closed at 3,207.18. The objective for the S & P should still be up to 3,281.20.
At this point, support should be at the minor 3,164 level. Also, there is a minor support level at 3,203. Watch how the market reacts at this level.
The 3,125 level should be support.
Technical support is around 3,200. And watch the 3,211 area.
QQQ:
Major level: 250.00
Minor level: 248.54
Minor level: 245.31
Major level: 243.75 Hit
Minor level: 242.15
Minor level: 239.00
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
The QQQ closed at 243.30. The QQQ took out the 243.75 level, hitting a high of 244.18.
And 245.49 is the upper band on the daily chart. And the QQQ is just under it.
The QQQ made a new all-time high.
On the downside, the minor 242.15 level should be support.
The 242 area should be technical support.
And the 242 area should be support from yesterday's daily bar.
IWM:
Major level: 156.25
Minor level: 154.70
Minor level: 151.56 **
Major level: 150.00 Hit
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
Minor level: 142.19
Minor level: 139.06
Major level: 137.50
The IWM closed at 150.26. The IWM will still need two closes above 151.56 to test 156.25.
The midband is 147.59, which should now be support.
And the minor 151.56 level should also be support. And watch to see if the IWM can hold 150.
Technical support should be around 148.
TLT:
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 Hit
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 TLT closed at 158.49. The TLT hit the 159.38 level. Yesterday's high was 159.64.
At this point, support should be at the minor 158.60. And to move higher, the TLT will need two closes above 160.16.
The TLT is in a downtrend on the 60 minute chart. Resistance on that timeframe is now around 162.
The TLT is bouncing from its oversold condition as we expected.
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 161.26. With a close above 160.16 today, the GLD should test 162.50.
The major 159.38 level should be support.
The GLD is sitting right at the midband on the 60 minute chart, which is 161. Watch for the breakout or breakdown and trade accordingly.
XLE:
Minor level: 47.65
Major level: 46.88 HIT
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 45.10. Watch to see if the XLE can clear 46.09. If it can't, it should pull back a bit more.
43.75 should be support. And the minor 44.53 level should also be support.
And technical support should be around 44.
The XLE is pulling back from its overbought condition.
AAPL:
Major level: 350.00
Minor level: 346.88
Minor level: 340.63 **
Major level: 337.50
Minor level: 334.38
Minor level: 328.13
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
Apple closed at 343.99. Apple closed $10.63 higher for the day.
Apple did close above 340.63, so a close above this level today and the objective should be to 350.
The minor 340.63 level should be support. And the major 337.50 level should also offer support.
And technical support is around the 340 area.
WATCH LIST:
Bullish Stocks: GOOGL, TSLA, CMG, NTES, ASML, NVDA, AAPL, PAYC, LULU, LRCX, FB, ADSK, BABA, KLAC, ZM, SPOT, SWKS
Bearish Stocks: BDX, VRSN, SAFM, ROKU, AEM, THS, PFE, FGEN
