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 $.75
DUST Long $4.50
Total Premium Collected $.70
SNAP Long at $14.54
Total Premium Collected - $2.37
Short June 20th - $15.50 call @ $.27
RRC Long at $11.85
Total Premium Collected $.70
RRC Long at $9.20
RIG Long at $8.81
Premium Collected - $1.45
FEYE Long at $17.18
Total Premium Collected $.80
CRM Long June 28th $155 Call @ $3.20
CRM Short June 28th $160 Call @ $1.00
CRM Long June 28th $152.50 Put @ $.70
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Yesterday, I suggested a front week debit spread on CRM. I also suggested hedging the position with puts.
After Thursday's strong bullish day, we have now had two consecutive days of narrow range trading.
Thursday's range was 27.56 points and Friday came in at 17.28. And yesterday, the range was 10.87.
This is starting to look like last week where Tuesday had a range of 25.35 points after a series of narrow ranges.
Expansions usually follow narrow range trading and vice versa. After a large range, you usually expect a contraction.
For the day, the S & P 500 closed to the downside 5.11 points. It closed at 2,945.35.
The upside objective is still to 2,968.80 and I am still biased for that target to get hit.
At this point, there has not been any price action that would suggest otherwise.
But, I would expect support at 2,949.20 and yesterday the S & P 500 closed just under it. The market will need to recapture this level to move higher. If it can't, it could drop to 2,900.
So, watch this level today.
Also, with all short term charts in bullish formations, we should see support come in if the market continues to pull back.
The question is where should support be?
From a technical standpoint, there is support at 2,928. This level should be rather strong as there is a minor resistance level at 2,929.70.
The support area from yesterday's daily bar is in the 2,948 to 2,959 area.
And the support from last weeks weekly price bar is in the 2,920 to 2,925 area.
Pre open, the S & P 500 is trading about 3 points lower.
Here are the Key Levels for the Markets:
$VIX:
Major level: 21.88
Minor level: 21.10
Minor level: 19.53
Major level: 18.75
Minor level: 17.97
Minor level: 16.41 **
Major level: 15.63 <
Minor level: 14.85
Minor level: 13.28
Major level: 12.50
Minor level: 11.72
The VIX closed Friday at 15.26. For the day, it closed .14 points lower.
The last time this happened was Wednesday, June 12th and the market rallied about 70 points after that.
The 15.63 level should still be resistance and yesterday's high came to 15.56. I still expect resistance at this level.
So, it the VIX does clear it, look for the higher prices to follow.
On the downside, minor support is at 14.84.
12.50 is still the downside objective.
SPX:
Major level: 2,968.80 <
Minor level: 2,949.25
Minor level: 2,910.15 **
Major level: 2,890.60
Minor level: 2,871.08
Minor level: 2,832.03
Major level: 2,812.50
Minor level: 2,792.98
Minor level: 2,753.93
Major level: 2,734.40
Minor level: 2,714.88
Minor level: 2,675.83
Major level: 2,656.30
Looking for the active objective of 2,968.80 level, to be hit.
At this point, there is minor support at 2,844.30 and at 2,932.10, if that cannot hold.
2.919.90 should also offer support if the levels above cannot hold.
2,981 is minor resistance on the upside.
I am still biased for the S & P 500 to clear the major 2,968.80 and if it can, a move up to 3,095 is possible.
Technical support should be at 2,920.
QQQ:
Major level: 193.75
Minor level: 192.19
Minor level: 189.06 **
Major level: 187.50 < Hit
Minor level: 185.94
Minor level: 182.81
Major level: 181.25
Minor level: 179.69
Minor level: 176.56
Major level: 175.00
Minor level: 173.44
Minor level: 170.31
Major level: 168.75
Minor level: 167.19
The QQQ closed at 188.16. Two closes above the minor 189.06 level and the QQQ should move up to 193.75.
However, it needs to clear the minor 189.84 level first.
Minor support should be at 187.89. And major support at 187.50.
Like the S & P 500, the QQQ did cross into an uptrend on the 60 minute chart.
Technical support should be at 186.
IWM:
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25 <
Minor level: 154.69
Minor level: 151.56 **
Major level: 150.00 <
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
The IWM closed at 152.08. And yesterday's high came to within 31 cents of the midband, which is now 154.74.
The IWM will, of course, have to clear this level to move higher.
Continues to be the weakest of the major markets.
Broke under the major 153.13 support level. Looking more like a move to 150 is the next move for the IWM. And if the IWM cannot reclaim 152.34 today, it would confirm the drop.
TLT:
Major level: 134.38
Minor level: 133.60
Minor level: 132.03 **
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
The TLT closed out at 132.41. For the day, it was up $0.98 and continues to trade around the upper band on the daily chart.
That level is now 132.64. If the TLT cannot reclaim the upper band, look for a pullback.
132.81 should be resistance and 131.25 should offer support.
GLD:
Major level: 134.48
Minor level: 133.60
Minor level: 132.03 **
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
The GLD closed at 133.94. The GLD has now gone parabolic and this was the third day of trading above the upper band on the daily chart.
The upper band is now 130.39.
If the GLD takes out 134.38, I would expect it to continue higher. If not, a pullback of this overbought condition would be expected.
XLE:
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
Minor level: 58.60
Minor level: 57.03
Major level: 56.25
The XLE closed at 62.99. The XLE could not close above 63.28, so it will still need two closes above this level to move higher.
Minor support is right at yesterday's low, which is 62.89.
And at this point, 62.50 should offer strong support. A break of 62.50 and the XLE should head lower.
The 60 minute chart did cross into an uptrend on Friday. Technical support is at 61.80.
AAPL:
Minor level: 203.13
Major level: 200.00
Minor level: 196.88
Minor level: 190.63 **
Major level: 187.50 <
Minor level: 184.38
Minor level: 178.13 **
Major level: 175.00
Minor level: 171.88
Minor level: 165.63
Major level: 162.50
Apple closed at 198.58. Apple did hit 200, but could not close above it.
196.88 should be minor support.
200 is a key level for Apple. If it does take out 200, it should move up to 250.
Technical support is at 190. The 60 minute chart has crossed into an uptrend. Buy at support.
WATCH LIST:
Bullish Stocks: BA, LMT, SHOP, NOC, ADBE, SPY, NOW, MLM, WDAY, HD, ZBRA, CME, EW, CMI, DATA, V, DE, WIX
Bearish Stocks: ALGN, BLUE, AMTD, FIZZ, TWTR, WES, BGSPRGO, AMTD
Be sure to check earnings release dates.
