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
AMN Long July 17th - $45 Call @ $3.30
AMN Short July 17th - $50 Call @ $1.55
PRA Long at $14.27
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Yesterday, I suggested two new positions. The first was a straight-out purchase of PRA.
The second position was a debit spread on AMN.
The S & P 500 continued to push higher. The S & P closed 11.42 points higher. The market closed out the day at 3,055.73.
So, the S & P made a higher high by taking out Fridays high by 13 points. This satisfied the 90% close percentage from Friday.
And yesterday closed at 79% of the range of the bar. Therefore, the odds are about 4 to 1 that yesterday's high of 3,062.18 should be violated before the low of 3,031.54.
And pre open, the S & P is trading about 11 points higher.
This would project to an open around 3,066 or about 4 points above yesterdays high. So, it would appear that the close percentage projection will be fulfilled at the open.
The projected open would be about 2 points below last week's high of 3,068.67.
Last week's close percentage of 75.4% suggests that 3,068.67 should be taken out. So, watch this level today.
3,068.67 is also the high of the May monthly bar.
Support from yesterday's daily bar should be in the 3,047 area.
And the support area from last week's bar is in the 3,019 to 3,024 area.
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 28.23. The VIX closed .72 points higher.
The S & P and the VIX diverged with both closing higher. This warns us that a reversal could be forthcoming.
The move lower, the VIX needs to break under 28.13. And with two closes under 27.35, the VIX should drop to 25.
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.
Technical resistance is around 29.
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 3,055.73. The suggests objective should be to 3,125. And 3,007.85 should offer support. And support should also be around the 3,047 level, which is also the support area from yesterday's daily bar.
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 234.06. This was the second close above 232.78. This now suggests that the target for the QQQ should be up to 237.50.
The major 231.22 level should be support. And the minor 232.78 level should also be support.
And the 231 area should be technical support.
And 233 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
The IWM closed at 140.23. The IWM closed above 139.06 for the first time. If the IWM can close above 139.06 today, it should test 143.75.
The midband is 147.60 and the IWM is just under it. The IWM is testing the midband.
The 138 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 162.28. The TLT reversed and closed back below 162.50.
To move higher, the TLT will need two closes above 163.28. And to move lower, two closes under 161.72.
The TLT is in a downtrend on the 60 minute chart. Resistance on that timeframe is now around 163.
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 163.66. The GLD managed to close above the major 162.50 level. Watch the minor 163.28 level on the upside. And yesterday was the first close above it.
A close today above 163.28 and the GLD should head up to 165.63.
Technical support is around 162. 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 39.44. The objective for the XLE should still be up to 40.63. And yesterday's high was within one point of it.
The major 37.50 level should be support. And 38.28 should also offer support.
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 321.85. The objective for Apple should be up to 325. And Apple is within 3 points of it.
The minor 315.63 level should be support.
The 319 area should offer support.
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
