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
SNAP Long at $14.54
Premium Collected - $1.65
BERY Long Sept $50.00 Call at $2.70
BERY Long Sept $47.50 Put at $1.50
APA Long July $40.00 call @ $2.10
APA Long July $40.00 put @ $1.90
..........................................................................................
You should have opened a long option position on APA yesterday. The July expiration gives us a few weeks to see if APA bounces.
Yesterday bounced back from the sell off on Tuesday. In fact, not only did the S & P 500 bounce hard, it closed higher for the day. And closed back above the downside level of 2,714.88.
This now voids the bearish scenario. So, the market would need two closes under 2,714.88 to move down to the next level.
The intra day range was 26.91. But, if you factor in the bullish gap, it should actually be higher.
Yesterday's close actually reversed two prior bearish closes. This is a strong price reversal. The close almost reversed three prior bearish closes, but missed doing that by about 3 points.
This puts support from yesterday's daily bar in the 2,713 to 2,716 area. Of course, this is right around the 2,714.88 resistance line, which should now act as support.
The day closed at 2,724.01 or about 10 points above the support area. Assuming the market pulls back, look for support at the levels above.
Today also marks the last day of trading for May. As of yesterday, the monthly high is 2,742.24 and the low is 2,594.62.
The midpoint is 2,668.43.
So, yesterday's close is about 55 points above the midpoint.
A close above the midpoint would be bullish. A close above 2,636 would be above the 75% level of the May monthly bar.
I do want to point out that the monthly low of 2,594.62 is about 3 points lower than the upper band on the monthly chart.
Pre open, the S & P 500 is trading about 1.50 points to the upside. Watch the levels above in the event the market does pullback.
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 14.94 yesterday. It closed back under 17.19. So, a close under 17.19 today would suggest a retest of 12.50.
The VIV moved one level and stalled at the 18.75 line.
15.63 should offer resistance. And a break under 14.84 would suggest a further drop.
$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
Minor support is now at 2,714.80. And 2,702.60 should also offer support.
2,721 is also a minor support level. If this holds, look for a move up to 2,739.
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 170.18. 169.53 should now offer minor support. If the QQQ clears 170.31, look for it to head higher.
Like the S & P 500, the 30 minute and 60 minute charts remain bullish. Still stronger than the S & P 500 index.
IWM:
Major level: 165.63
Minor level: 164.85
Minor level: 163.28
Major level: 162.50 <
Minor level: 161.72 **
Minor level: 160.16
Major level: 159.38
Minor level: 158.60
Minor level: 157.03
Major level: 156.25
Minor level: 155.47
The IWM surged to close at 164.08. A close today above 163.28 and the objective now becomes 165.63. It closed 2 cents above the 164.06 minor resistance line.
163.28 should now offer support.
TLT:
Major level: 125.00
Minor level: 124.61
Minor level: 123.83
Major level: 123.44
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
The TLT closed at 121.42. Watch the 121.49 level today. A close today under 121.49 would push the TLT back down to 120.31.
120.70 is minor support. And resistance is now at the midband, which is 121.95.
GLD:
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 <
Minor level: 123.05
Minor level: 122.27
Major level: 121.88
Minor level: 121.49
Minor level: 120.70
Major level: 120.31
The GLD closed 123.37, closing just under the major 123.44 level again. 125 should offer strong resistance on the upside.
The GLD is trading between the 200 ema and 253 day average on the daily chart. The 200 ema is 123.74 and the 253 is 123.02.
It will either break out or break down from here.
I am biased for a breakdown, but a straddle or strangle would be the low risk trade here.
XLE:
Major level: 81.25 <<<
Minor level: 80.47
Minor level: 78.91
Major level: 78.13 <
Minor level: 77.35
Minor level: 75.78 **
Major level: 75.00
Minor level: 74.22
Minor level: 72.66
The XLE surged and closed at 76.60 yesterday. It had a bullish three close reversal.
Look for a move up to 78.13.
75.78 should now offer short term support.
FXY:
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
Minor level: 86.53
The FXY closed at 87.89. A close today under 88.09 and the FXY should test 87.50.
88.09 is minor resistance.
AAPL:
Major level: 190.63
Minor level: 189.85
Minor level: 188.28 **
Major level: 187.50
Minor level: 186.72
Minor level: 185.16
Major level: 184.38
Apple closed exactly on the 187.90 line. A straddle or strangle would be the trade right here. Either it breaks above 187.50 or breaks down.
Both short term charts, the 30 & 60 minute remain bullish.
WATCH LIST:
Bullish Stocks: GOOGL, BA, NFLX, FDX, NVDA, PANW, LRCX, BABA, MA, AAPL, AET, FFIV, DE, ACN, CAT, ATHN, V, UTX, MON, KLAC, CRM
Bearish Stocks: TSLA, NTES, AMT, LOGM, CASY, BCO, CAH, MDP, RRGB
Be sure to check earnings release dates.