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
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DUST Long $4.50
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DYN Long at $12.55
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COWN - Long at $14.95
VRX Long at $13.69
APA Long Oct $47.50 Call at $3.45
APA Long Oct $45 Put at $2.75
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Yesterday's low for the S & P 500 came in at 2,424.75. This was right in the 2,422 to 2,425 area I have mentioned this week.
As a reminder, the 2,422 to 2,425 area was the support zone from last week's weekly price bar.
But to confirm that this level should hold, you wanted to see the VIX sell off a level of resistance.
On yesterday's webinar, I mentioned that the VIX should test 10.94. In fact, that was in yesterday's update. I also suggested that it should be resistance.
The high for the VIX yesterday came in at 10.93, just one cent under the level I mentioned yesterday.
Once the VIX topped out and started to head down, the market began its move up.
After the market bottomed, the SPY moved up about slightly over one point.
This may not seem like much, but if this were a Friday, that trade has the potential to at least double your money.
Just from having an idea of where support for the S & P 500 should be and anticipating in advance what the VIX should do.
Another market I mentioned on yesterday's webinar was the FXY. In yesterday's update I mentioned how we were looking for 87.50 to act as resistance. And if you went short, you would have actually had a better fill based on the bullish gap.
I discussed the conditions to look for to assess whether this trade would work and how this could be a very low risk set up.
As it turned out, yesterday, the FXY close under the low from Wednesday, which was one of the situations you would want if you went short.
If you were not able to attend yesterday's webinar live, I encourage you to listen to the recording, which can be found in the member's area.
I try and explain by way of example how you can use the price levels I share to your advantage. Or at least I attempt to. If you do have any questions, you can always email me directly.
After Monday's narrow range of 5.23 points, yesterday followed suit with a range ot 8.09 points.
Both days were under the average true range which now reads 12.70.
Today we get the testimony of James Comey. It seems the market has been waiting for this.
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
10.94 should be still resistance. And minor support is at 10.16.
I would expect 11.33 to offer strong resistance in the VIX does take out 10.94.
$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
2,425.80 should still offer minor support. 2,433.60 is a minor level to watch today. An open under it and it could offer resistance. And vice versa with an open above it.
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 closed above 142.97 yesterday. This now implies support should be at 142.97 and 143.16.
144.14 should be minor resistance.
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
A close above 138.28 today and the IWM should test 140.63.
138.28 should be minor support.
136.72 should also be minor support.
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
Major level: 118.75
Minor level: 117.96
The TLT moved down off the midband on its daily chart. It closed at 124.92, just under the major 125 level.
124.80 is the minor level to watch. A close under 124.80 and the TLT should continue down.
The 125.78 level acted as resistance.
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
Like the TLT, the GLd pulled back after the bullish gap from Tuesday. The GLD closed at 122.45.
Minor support should be at 121.88. 123.44 should be minor resistance.
XLE:
Major level: 71.88
Minor level: 71.10
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
Still biased for a move down to the 62 area. 64.85 is the next level to watch. Two closes under 64.85 and the XLE should drop to 62.
64.45 is minor support. I would expect 65.43 to offer resistance.
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 needs to break under 87.50 to head lower. Watch this level today.
Yesterday I said ... "88.09 is a minor resistance level. Watch this today."
As it turned out, yesterday's high was 88.10. 87.89 should be minor resistance.
AAPL:
Major levels for Apple are 162.50, 156.25, 150, 143.75, and 137.50
154.69 should be minor support. 155.47 is a minor resistance level. Target is back to 156 though.
WATCH LIST:
Bullish Stocks: PCLN, AMZN, GOOGL, REGN, TSLA, AVGO, ULTA, DPZ, MMM, GD, COST, NFLX, BDX, FB, ALGN, EXPE, CB, NVDA
Bearish Stocks: GWW, CXO, SLB, DXCM, DRQ, PDCE, DKS, GCO, CLR, CNQ, CNQ, NBL, KORS
Be sure to check earnings release dates.
