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
SNAP Long at $14.54
Premium Collected - $1.65
BERY Long Sept $50.00 Call at $2.70
BERY Long Sept $47.50 Put at $1.50
APA Long July $40.00 call @ $2.10
APA Long July $40.00 put @ $1.90
SYMC Long at $20.99
SYMC Short June 8th- $21 call at $1.40
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Yesterday, the S & P 500 managed to close higher for the day, but barely. For the day, the S & P 500 closed at 2,748.80, up 1.93 points on the day.
For the day, the S & P formed an almost perfect doji bar, where the open is approximately the close. And it was another narrow range day.
The daily range was only 13.11 points. This is about one half the average true range, which is now 26.65 points.
This price action makes you feel that a reversal of this recent upswing is coming.
But, with the short term charts bullish, the longside is still the best bet to profit.
The key price levels to watch for today will be yesterday's close of 2,748.80 and the high, which was 2,752.62.
The close was within 1.30 points of the next upside level, which is 2,753.93. This is also a key level for today. If the S & P can close above the minor 2,753.93 level for two days, the upside objective becomes 2,812.50
Pre open, the S & P 500 is trading about 5 points higher.
This projects to an open around 2,754, which is right around the key resistance level and yesterdays high. Watch to see it the market can hold the resistance levels I mentioned above.
If the market drops under them, then they become resistance. If price continues to push higher, they should act as support.
Continue to monitor the longer term levels for the market.
Here are the Key Levels for the Markets:
$VIX:
Major level: 31.25
Minor level: 29.69
Minor level: 26.56
Major level: 25.00
Minor level: 23.44
Minor level: 20.31
Major level: 18.75 <
Minor level: 17.19
Minor level: 14.06 **
Major level: 12.50 <
Minor level: 10.94
The VIX closed at 12.48 yesterday. This of course, is two cents under the major 12.50 resistance level. We were looking for a retest of 12.50.
Now the question is what next?
On the downside, I am looking for support at 10.94. A break under this level should tell us the VIX is heading lower.
On the upside, minor resistance is at 13.28 and 14.06.
$SPX:
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
Minor level: 2,636.75
Minor level: 2,597.65
Major level: 2,578.10
Minor level: 2,558.58
Watch to see if the S & P 500 can clear 2,753.93 today. Also, a minor resistance level is at 2,749.
With an expected open above 2,749, watch to see if it holds as support on a pullback.
Short term momentum is bullish. Continue to buy against support.
QQQ:
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
Minor level: 164.06
Major level: 162.50
The QQQ closed at 174.84. The high for the day was 175.13, which means our target was exceeded by 13 cents.
173.44 should offer minor support. And on the upside, 176.56 could offer resistance. If the QQQ can clear 176.45, I would expect it to continue higher.
Like the S & P 500, the 30 minute and 60 minute charts remain bullish. Still stronger than the S & P 500 index. Continue to buy against support.
The QQQ is trading above the upper band on its 30 minute chart, which tells us it is overbought short term.
IWM:
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
The IWM closed at 165.73. This means the IWM has exceeded our objective by 10 cents.
The next level on the upside is 166.41. Two closes above this level and the target should be to 168.75.
162.50 should offer strong support. And 164.84 should offer minor support.
TLT:
Major level: 125.00
Minor level: 124.61
Minor level: 123.83
Major level: 123.44
Minor level: 121.49
Minor level: 120.70
Major level: 120.31
Minor level: 119.92 **
Minor level: 119.14
Major level: 118.75
Minor level: 118.36
The TLT closed at 119.71. The TLT should test 118.75.
A break under 119.14 suggests the TLT should continue lower. Daily trend remains bearish. Selling against resistance is the best strategy at the moment.
GLD:
Major level: 128.13
Minor level: 127.35
Minor level: 125.78
Major level: 125.00
Minor level: 124.61
Minor level: 123.83
Major level: 123.44
Minor level: 123.05 **
Minor level: 122.27
Major level: 121.88 <
Minor level: 121.49
Minor level: 120.70
Major level: 120.31
The GLD closed 122.85, closing just under the major 123.44 level again. The midband is now 123.05 and the GLD is just under it.
Objective should be to 121.88. And resistance should be at 123.44
XLE:
Major level: 81.25
Minor level: 80.47
Minor level: 78.91
Major level: 78.13
Minor level: 77.35
Minor level: 75.78
Major level: 75.00 <
Minor level: 74.22
Minor level: 72.66
The XLE closed at 75.54 on Friday. At this point, I expect a retest of the 75 level.
I would expect support at 75, however if it is violated, strong support should be at 71.88. If 71.88 cannot hold, a deeper pullback could happen.
FXY:
Major level: 89.06
Minor level: 88.87
Minor level: 88.48
Major level: 88.28
Minor level: 88.09
Minor level: 87.70
Major level: 87.50 <
Minor level: 87.31
Minor level: 86.92
Major level: 86.72
Minor level: 86.53
The FXY closed at 87.29. The FXY is just above the midband on the daily chart. The midband is 86.99. If this level cannot hold, look for a further sell off.
87.50 should now be resistance. A close under 87.31 today and the objective becomes 86.72.
AAPL:
Major level: 193.75 <<
Minor level: 192.97
Minor level: 191.41 **
Major level: 190.63
Minor level: 189.85
Minor level: 188.28
Major level: 187.50
Minor level: 186.72
Minor level: 185.16
Major level: 184.38
Apple closed at 193.31. Yesterday's high was 193.42. If Apple clears 193.75, it paves the way for a move up to 200.
Apple is trading right at the upper band on the 30 minute chart, which does suggest it is overbought short term.
Also, the 30 minute chart is getting close to crossing into an uptrend.
WATCH LIST:
Bullish Stocks: AMZN, GOOGL, NFLX, FDX, ALGN, ADBE, LGND, CP, ODFL, ACN, CME, VRSN, KLAC, DECK, LULU, GRUB, MSFT, ADI, WIX
Bearish Stocks: CHTR, CB, JNJ, LOGM, CASY, ALL, JACK, WBA, HSIC
Be sure to check earnings release dates.
