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
VRX Long at $13.69
APA Long Oct $47.50 Call at $3.45
DIS Long June 23, 2017 $107 Call at $0.73
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The sell off continued yesterday, with the S & P 500 closing to the downside 1.42 points, at 2,435.61. This is just under the major 2,437.50 level.
The low for the day came in at 2,430.74. This is just below the bullish gap, which is at 2,433.15.
Essentially, the S & P 500 retested the 2,437.50 level, which was expected.
The minor level for the S & P 500 is 2,433.60. If the S & P 500 closes under that level for two days, I would expect a drop to 2,421. At this point, the S & P 500 has not closed under it.
Oil has been in a free fall. At this point, I do believe it is getting close to a bottom. The XLE is getting close to the major 62.50 level. I would expect support at this level.
For the USO, the long term support level is around 7.80 to 8.20. Yesterday, it closed at 8.71, so it is getting very close to where I believe support should come in.
I also want to mention that the USO is trading under its lower extreme band on its daily chart. This show you how oversold it is.
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 <
The high for the VIX came in at 11.40, just above the minor 11.33 level. The VIX closed at 10.75. This is back under the 10.94 level. At this point, I would expect resistance at 10.94.
On a break above 10.94, I would expect 11.72 to be resistance. To retest 9.38, the VIX will need two closes under 10.55.
$SPX:
Major level: 2,500.00 <
Minor level: 2,484.38
Minor level: 2,453.12 ***
Major level: 2,437.50 <
Minor level: 2,421.88
Minor level: 2,390.62
Major level: 2,375.00
Minor level: 2,359.38
Minor level: 2,328.12
Major level: 2,312.50
Pre open, the S & P 500 appears set to open slightly to the downside. Watch for the VIX to reverse to the downside and head down as the indication that the market should reverse to the upside.
2,433.60 is the minor support level to watch today. If it holds, it should retest the 2,437 level.
To move lower, the S & P 500 would need two closes under 2,421.88.
QQQ:
Major level: 146.87
Minor level: 146.09
Minor level: 144.53
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
The QQQ reversed and closed at 140.74. It was up 1.38 on the day.
141.02 is a minor resistance level and if it breaks through that level, expect the QQQ to head higher. 140 should be support.
IWM:
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
The IWM should test the 137.50 level. Minor support is at 138.28 and resistance is at 140.63.
139 is a minor support level. Watch to see if this level holds today. If it does, the IWM should bounce.
TLT:
Major level: 128.13 **
Minor level: 127.35
Minor level: 125.78 <
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
Major level: 121.88
Minor level: 121.09
Minor level: 119.53
The TLT continues to march up to the 128.13 level. It closed at 127.56 yesterday, within one point of the objective.
127.73 should be minor resistance. And 127.15 should be minor support.
GLD:
Major level: 125.00
Minor level: 124.22
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
The GLD is holding just above the minor 117.97 level. If it can reclaim the 118.75 level, it should bounce. Daily trend remains bearish.
117.97 is the key level at the moment. Minor resistance should be at 120.31.
XLE:
Minor level: 69.53
Major level: 68.75
Minor level: 67.97
Minor level: 66.41 ***
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
I expect a test of 62.50. This would be confirmed if the XLE closes under 63.67. It is 30 cents above it now. The XLE is oversold short term, so a bounce could be expected.
Resistance is now at 65.63.
FXY:
Minor level: 87.89
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 should test 87.50. Keep a tight stop if you followed the short strategy off the last top.
Minor support is at 86.33 and 86.62 is minor resistance.
AAPL:
Major levels for Apple are 162.50, 156.25, 150, 143.75, and 137.50
Apple closed at 145.87. Minor support is at 145.31.
Next target is $150. A close today above $145.31 should confirm that. And look for $145.31 to offer support.
WATCH LIST:
Bullish Stocks: TSLA, NOC, MMM, BA, ANTM, CI, CMI, IBM, AET, ATHN, CLX, HON, WYNN, STMP, KMB, VRTX, MCO, RCL, CAT
Bearish Stocks: BWLD, CASY, EOG, FANG, ROST, AMBA, KORS, BGS, CLR
Be sure to check earnings release dates
