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
DYN Long at $12.55
Premium Collected $0.48
COWN - Long at $14.95
DIS Long July $105 Call @ $3.60
DIS Short May 26th $109 Call @ ($0.23)
VRX Long at $13.69
VRX Short May 26th - $14 at ($0.40)
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The market continues to inch up to our target of 2,406.30.? In fact, yesterday's high was within one point of the objective.
I expect the target to be hit and exceeded this morning.? Pre open the S & P 500 appears set up open around 5.25 points to the upside, which should put it at our target.
Based on the pre market, the next level to watch will be 2,414.10.
That is the next confirming line. In fact, it is the confirming line up to 2,437.50.
On a larger scale, the 2,437.50 level is the confirming line for a move up to 2,500.
If the S & P 500 can close above 2,437.50 for two days, the objective should be to 2,500.
Having said that, I still believe that 2,438 should be a difficult level to get through on the first attempt.
Regardless of the price action in the coming weeks, you know the key price levels I am looking at.? And you should be too.
The markets seem to be less reactive to Fed news releases and announcements.? In fact, yesterday's reaction to the release of the Fed notes was tepid, at best.? There will be a time when that will not be the case.
Here are the Key Levels for the Markets:
$VIX:
?
Minor level: 16.02
Major level: 15.63
Minor level: 15.24
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
Major level:? 9.38
The VIX closed under the minor 10.16 support level.? It closed at 10.02.? Objective is still down to 9.38.
10.94 should be short term resistance.
$SPX:
Minor level: 2,414.10 <
Major level: 2,406.30 ***
Minor level: 2,398.48
Minor level: 2,382.82
Major level: 2,375.00
Minor level: 2,367.20
Minor level: 2,351.60
Major level: 2,343.80
Minor level: 2,336.00
Yesterday's low came in at 2,397.99.? Close enough to say that the 2,398.40 support level I mentioned yesterday held.
Look how price react at the 2,406.30 level.
Minor support should be at 2,402.
QQQ: ?
Major level: 140.63 <
Minor level: 139.85
Minor level: 138.28 **
Major level: 137.50
Minor level: 136.72
Minor level: 135.16
Major level: 134.38
The QQQ closed at 139.78. 140.63 is still the objective.
By taking out 139.45, it clears the way for a move to 140.63.
Support should be at 139.45. Minor resistance is at 140.23.
IWM:
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
Major level: 134.38
Minor level: 133.60
The IWM closed at 137.49, only one cent under the 137.50 level.
136.72 should be minor support.? And 139.06 could be minor resistance.
TLT: ?
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 ?
We should know today if the TLT will test 125.? A close above 122.66 would tell us to expect that.? 121.88 should be support.
GLD: ?
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
Minor level: 114.85
Minor level: 113.28
Major level: 112.50
The GLD closed back above 119.53. A close today above 119.53 and the GLD could test 121.88.
119.53 should be minor resistance.? 118.95 should be minor support.
XLE:
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 <
Minor level: 67.97 **
Minor level: 66.41
Major level: 65.63
Watch the 67.97 level today.? A close today under that level and the XLE should test 65.63.
The XLE continues to trade between 68.75 and 65.63.? Quite boring at the moment and a market to avoid until it either breaks out or breaks down.
FXY:
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 hit a low of 85.85, just 9 cents under the 85.94 level I mentioned yesterday.
Two closes under 85.55 and the FXY should drop to 84.38.? 85.94 is a ley level.
Two closes under 85.94 and the FXY could drop to 81.
AAPL:
Major levels for Apple are 162.50, 156.25, 150, 143.75, and 137.50
Apple held above the 153.13 support level I mentioned.? It should still be support.? Objective is to 162.
WATCH LIST:
Bullish Stocks: AMZN, REGN, RTN, CB, NVDA, JNJ, BABA, MMC, YUM, XLNX, CTSH, ZTS, RH
Bearish Stocks: ORLY, AYI, UHS, CRO, RL, DXCM, FTL, TSCO
Be sure to check earnings release dates.