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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Target hit!? Or should I say, the target is FINALLY hit!
Seems like it took a long time to reach 2,406.30.? Last Tuesday, the S & P 500 came within one point of the objective before pulling back.
And since bottoming at 2,352.72 last Thursday, the market ran straight up to the target.
And not only did the S & P 500 take out our objective of 2,406.30, but it managed to close above the next upside confirming line, which is 2,414.10.
Yesterday managed to close at 2,415.07 or about a point above the next line.
After the market takes out a major level, the usual tendency is for the market to stall or pullback at the next confirming level.
Having said that, we should know today if that is the case.? A close above 2,414.10 would indicate the market should head up to 2,437.50.
There is also resistance at 2,421.90.? I would expect strong resistance there as well.
From the larger perspective, I mentioned that two closes above 2,406.30 would indicate that the objective would be 2,500.?? And of course, yesterday qualified as the first close above that level.
We could see a scenario where the market closes under 2,414.10, but above 2,406.30. In fact, this is the scenario I would welcome.
This would indicate a short term pullback before the market marches higher.
Finally, the VIX is down to all time lows. It hit a low of 9.72 yesterday.? 9.38 should be a major support level for the VIX. ?
And yesterday, the down to up volume picked up slightly.? So, perhaps we will see the scenario I outlined.
The markets are closed on Monday for the Memorial Day Holiday.
And finally, we do have two open positions that expire today.
The first is the short $14 call on VRX.? With VRX trading around 12.80, the calls should most certainly expire worthless today.
Likewise, you should be short the $109 call on DIS that expires today. DIS is trading around $107.25, so they should expire today as well.
You will receive a separate email if any adjustments are made to these positions.
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
10.94 should be short term resistance.? Watch the 10.16 level today.
If the VIX opens above it, it could offer support.
$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
2.421.90 should offer short term resistance.? And 2,406 should be support.
Probably not a great day to day trade.
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 hit its objective.? Target of 140.63 hit!? The QQQ closed just above that level, at 140.97.
141.41 should be minor resistance.? 140.23 should be minor support.
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 just above the 137.50 level.? It closed at 137.58.
137.50 should be support.? And 138.67 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 ?
Based on a close above 122.66 yesterday, the TLT should test 125.
I do expect resistance at 125.? Clearing 125 would tell us the TLT should head considerably higher.
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 could not close above 119.53.? It closed at 119.48. Strong resistance is at 120.
120.32 should be minor resistance.? 118.75 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
Look for a test of 65.63.? This should be a strong support level, so a violations tells us it should head lower.
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
To head lower, the FXY needs to break under 85.94. Watch this level.
85.74 could be minor support. And 86.33 should be minor resistance.
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.? Same as yesterday.
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