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
SNAP Long at $14.54
Total Premium Collected - $2.10
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 $0.80
AMC Long at $16.16
Total Premium Collected $0.35
GRUB Long June 7th $64.50 Call at $2.00
GRUB Short June 7th $69.50 Call at $0.40
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There is one position that expires today and that is the debit spread on GRUB. GRUB was moving nicely until Moody's assigned a high risk to a bond offering they are planning.
As a result, GRUB is trading about a dollar under the long strike.
I plan on closing the long position today if it gets a bounce. But, this unexpected announcement is why you should not overtrade any short term option position.
The market continued to follow through yesterday. For the day, the S & P 500 closed 17.34 points higher. It closed the day out at 2,843.49.
I mentioned yesterday to watch last week's high, which was 2,840.51. The market did take out the high. It hit a high of 2,852.10 before pulling back to close about 3 points above it.
Last week's high should still offer support.
And a close above that price today would be extremely bullish. And for the week, the weekly volume has already exceeded last week's volume, which is also bullish.
Based on this week's price action, there doesn't seem to be anything that can derail this bull market.
If there is any resistance for this market, it would be around 2,857.83.
That is the midpoint of last month's monthly bearish price bar.
If the S & P 500 can close above it, that would most certainly be bullish. But, it will be a level to monitor as the market trades higher.
I do want to point out that the 30 minute and 60 minute charts are still bearish. But, the 30 minute is turning and getting close to crossing into an uptrend.
If this can happen, then short term momentum will shift to the upside and I would expect more movement to the upside.
Support from yesterdays daily bar is in the 2,836 area. And support should be at last week's high as well.
This swing has now moved 123 points. And should be more based on the pre market trading. Pre market, the S & P 500 is trading about 9 points higher.
Beyond Meat, Inc. (BYND) reported their first earnings report and is up almost 29% off the report. This seems to be a trend well worth watching.
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 < HIT
Minor level: 14.85
Minor level: 13.28
Major level: 12.50
Minor level: 11.72
The VIX closed yesterday at 15.93. The VIX did hit the 15.63 level. The low for the day was 15.36.
Look for 16.41 to offer resistance. And a break under 15.63 and the VIX should move lower.
14.84 is minor support on the downside.
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
With a close yesterday at 2,843.49, this now suggests that if the
S & P 500 can close above 2,832 today, it should move up to 2,890.60.
2,836.90 should offer short term support. And 2,824.70 as well.
Possible resistance is at 2,849, so if the market can cleat this level, look for it to continue higher.
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 177.61. It was the first close above 176.56. This now suggests that if the QQQ can close above 176.56 today, it should move up to 181.25.
176.56 should now 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.
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 149.80. The next minor level is 151.56. Two closes above this level and it should move up to 156.
149.22 should still offer minor support. And there is technical support at 148.
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 130.61. The TLT will still need two closes under 130.47 to test 128.13.
128.13 should offer strong support.
Still above the upper band on the daily chart. That level is 129.99.
I would expect the TLT to continue to bounce until a firm close under the upper band.
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 125.88. A test of 126.56 is likely.
If the GLD cannot clear 126.56, I would expect a pullback.
Minor support is at 125.39.
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 60.99. A close today above 60.16 and I would expect the XLE to test 62.50.
60.35 is minor support. Look for 60.94 to offer support as well.
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 185.22. Looking for a move up to 187.50.
181.25 should now be support. 178 should offer support. And there is technical support is at 179.
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.