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.
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Yesterday, the market followed through from the strong bullish day on Tuesday. Wednesday closed at 2,826.15. Closing 22.88 points to the upside.
In three days, the S & P 500 has moved up almost 100 points.
And it managed to move back above the midband on the daily chart. Since closing under it, the S & P 500 has now had two closes back above the midband.
It should now be support. Watch this level on a pullback. The midband is 2,778.
And the S & P 500 managed to close back above the major 2,812.50 level.
The next minor level is 2,832.03. If the S & P 500 can close above this level for two days, I would expect a move up to 2,890.
But getting back above the 2,812.50 level is a strong indication that this move will continue. And the 2,812.50 level should be support.
I think the S & P 500 ultimately tries to test 2,968.80 again.
This would be the third attempt at the major 2,968.80 level in a year. And I do feel this will be a critical point for the market.
More on that as the market trades closer to that level.
The S & P 500 is now within 15 points of the high of last week's weekly price bar.
Last week's high was 2,840.51. And yesterday closed at 2,826.15. No question the market makes an attempt at last week's high.
A close above that high would be quite bullish. But we have two days to see if that can happen.
Pre open, the S & P 500 is trading about 8 points higher. Assuming this trading holds through the open, the market should be within 6 points of that level.
If it is taken out, look for it to act as support.
Support from yesterday's daily price bar is in the 2,822 area.
Salesforce reported last night and closed $7.63 higher. SFIX reported last night and appears it will open about 32% higher.
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 yesterday at 16.09. The VIX is now back within 60 cents of the major 15.63 level.
16.41 should offer resistance.
15.63 should offer some support. But, if it can't, look for the VIX to continue lower.
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
Now that the 2,812.50 level has been recouped, the next minor level is 2,832.03. Two closes above this level and the S & P 500 should test 2,890.60.
Support should be at 2,802.70. And the minor 2,812.50 level should also offer support.
On the upside, resistance could come in around 2,837.
QQQ:
Major level: 193.75
Minor level: 192.19
Minor level: 189.06
Major level: 187.50
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 stopped at 176.21. It cleared the major 175 level and now the key will be if the QQQ can close above the minor 176.56 for two days.
175 should be support.
Longer term, the key for the QQQ will be if it can close above 178.13. If it can, a run to 187 would be likely.
The midband which is 174.19, should now be support.
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 150.19. The next minor level is 151.56. Two closes above this level and it should move up to 156.
149.22 should offer minor support.
And there is still overhead resistance at the midband, which is 156.
TLT:
Major level: 134.38
Minor level: 133.60
Minor level: 132.03 **
Major level: 131.25 < HIT
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 130.19. It closed under the major 131.25 level. A close today under 130.47, and the TLT should test 128.13.
128.13 should offer strong support.
Still above the upper band on the daily chart. That level is 129.78.
GLD:
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00 < Hit
Minor level: 124.22
Minor level: 122.66
Major level: 121.88
Minor level: 121.49
Minor level: 120.70
Major level: 120.31
Minor level: 119.92
Minor level: 119.14
Major level: 118.75
The GLD closed at 125.47. A close today above 125.39 and the GLD should test 126.56.
If the GLD cannot clear 126.56, I would expect a pullback.
Support is at 122.66.
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
Minor level: 55.47
Minor level: 53.91
Major level: 53.91
The XLE closed at 59.88. The XLE will still need two closes above 60.16 to move up to 62.50.
If the XLE takes out 60.94, I would expect it to head higher. 59.38 should now be support. 59.77 is minor support.
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 182.54. Looking for a move up to 187.50.
181.25 should now be support. 178 should offer support.
WATCH LIST:
Bullish Stocks: CME, GPN, HSY, TLT, ELS, CBOE, GWR, ICE, BAH
Bearish Stocks: AMZN, GOOGL, REGN, ALGN, HD, ASML, RTN, GD, FDX, MMM, NVDA, JAZZ, BLUE, CAT, CXO, FANG
Be sure to check earnings release dates.