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
UNIT Long at $17.00
Premium Collected - $0.35
SNAP Long at $14.54
Premium Collected - $1.65
Short - May 4th - $14.50 call @ $1.00
TEVA Long $18.06
Premium collected - $1.10
Short May 4th - $18.50 calls @ $0.75
KMI Long September $16 call @ $1.00
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SNAP did report last evening and is trading about $2.39 to the downside based on the report. This sell off is why I suggested selling the $14.50 call for this week.
You get to keep the premium and no doubt the buyer of the call will suffer a total loss.
TEVA reports later this week and you should be short the $18.50 call for this week.
The S & P 500 closed at 2,654.80 yesterday. For the day, the market closed 6.75 points to the upside.
And for the day, it closed at 98% of the range of the daily bar. This mean to expect yesterday's high to be violated before the low.
And based on the pre market trading, the S & P 500 should open higher than yesterday's close.
As I write this, the market is trading about 3.50 points higher.
This intra day reversal should not come as a shock to you because we were looking for a bounce in the market.
What did come as a shock however, was the fact that we were looking for support around the 2,641 area. The low for the day was actually a bit lower at 2,625.41.
After stopping at 2,625.41, the S & P 500 rallied almost 30 points to the upside.
What wasn't s shock however was that the VIX stalled out and started heading down. This was the price action we were looking for to confirm a reversal in the market.
The VIX stalled out at just under the 17.19 level, at 16.82. At that point, it reversed and started heading lower.
That was the signal that the market should rally ... and it did.
Watch to see if the S & P 500 can clear the 2,672.95 level today.
Also, 2,641 should continue to act as support now that the market has cleared that level.
Finally, today at 2:00, we will hear from the Fed on interest rates. T
And Friday we will get the non farm payroll at 8:30AM EST.
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 15.49. It closed under the minor 15.63 level.
Resistance should be at 16.41 and 17.19.
Short term resistance is at 15.96.
$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
The S & P 500 rallied back to close just under the major 2,656.30. The market closed about 2 points under that level.
Minor support is at 2,646.50. And there is a minor support level right at 2,641.60, which is very close to the weekly price bar support level.
Also, 2,653.80 should also be a level to watch.
QQQ:
Major level: 175.00
Minor level: 171.88
Minor level: 165.63
Major level: 162.50 <
Minor level: 159.38 **
Minor level: 153.13
Major level: 150.00
Minor level: 146.88
Minor level: 140.63
Major level: 137.50
The QQQ closed at 162.78. It closed back above the major 162.50 level. The QQQ will need two closes above 165.63 to move higher.
Minor support level at 160.94. And major support at 162.50.
IWM:
Major level: 159.38
Minor level: 158.60
Minor level: 157.03
Major level: 156.25 <
Minor level: 155.47
Minor level: 153.91 **
Major level: 153.13
Minor level: 152.35
Minor level: 150.78
Major level: 150.00
Minor level: 149.22
The IWM closed at 154.07. This now implies that if the IWM closes above 153.91 today, it should test 156.25. Yesterday's low came to 151.71, just 15 cents above the 151.56 level I mentioned yesterday.
Minor support is at 152.34.
TLT:
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
Minor level: 117.58
Major level: 117.19
Minor level: 116.80
Minor level: 116.02
Major level: 115.63
The TLT closed at 118.41. 118.75 should offer support. However, to move higher, the TLT would need two closes above 119.14.
118.36 should be minor support.
GLD:
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
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 <
The GLD closed at 123.71. Yesterday's low was 5 cents above the 123.44 level.
Resistance should now be at 125.
123.44 is a key level for the GLD. If the GLD closes under 123.44 for two days, I would expect a drop to 120 and possibly 118.
XLE:
Minor level: 76.95
Major level: 76.56
Minor level: 76.17
Minor level: 75.39
Major level: 75.00
Minor level: 74.22
Minor level: 72.66 **
Major level: 71.88 <
Minor level: 71.10
Minor level: 69.53
Major level: 68.75
The XLE closed at 73.36. The target should still be up to the 75 level.
If the XLE can clear 75, it tells us it should continue higher. 73.83 is minor support. And minor support is at 73.44. 71.88 should be support.
FXY:
Minor level: 89.26
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
The FXY closed under the 87.50 level. It closed at 87.17. 87.50 should now be resistance. And if the FXY has two closes under 86.72, it should drop to 84.
86.86 is the midband on the daily chart. And the FXY is just above it. Watch to see if it offers any support.
AAPL:
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
Minor level: 160.94
Minor level: 157.81
Major level: 156.25
Apple closed at 169.10. Apple is trading about $7.50 higher this morning after reporting last night.
$175 should offer support. Buy against support.
WATCH LIST:
Bullish Stocks: BA, HUM, FDX, STZ, AET, COST, AET, RHT, FFIV, CVX, EOG, VLO, CTXS, EXP, MSFT, AZPN, WMT, MPC, CFC, FSLR, MLNX, ESRX, NKE
Bearish Stocks: NTES, AVGO, EA, VMC, DIS, CHKP, OLED, SWKS, QRVO, IRBT, INCY, LUV, CLVS, CRUS
Be sure to check earnings release dates.
