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 $15.20
Premium Collected - $2.79
AMC Long at $15.27
Premium Collected - $0.98
Short Nov $15 call @ (0.55)
THC Long at $14.63
Premium Collected - $1.95
Short Nov 24th - $14.50 call @ ($0.35)
..........................................................................................
The short $15.50 call on SNAP expired on Friday. To date, you should have collected a total of $2.79 in call premium on the position.
SNAP is oversold short term. Assuming we get the anticipated bounce, I will suggest you sell more call options.
And last week you should have rolled out the calls on THC. At this point, you should be short the November 24th-$14.50 calls.
This coming Friday, we have one call position that expires and that is the short $15 call on AMC.
Now onto the markets.
Last week, the S & P 500 pulled back slightly closing 5.54 points to the downside, at 2,582.30.
And last week's price bar formed another doji. The open for the week was 2,587.47 and the market closed about 5 points under the open.
Based on the weekly price bar, resistance should be in the 2,581 to??2,585 area.
It certainly appeared as if the market would break, but it really did not pull back as I would have expected if this were to be a depper correction.
In fact, even as the market sold off last week, it still managed to close above the major 2,578.10 level.
Last Thursday and Friday, the S & P 500 managed to trade under 2,578.10, but by the end of the day, it did close above the major line.
The shorter term 30 minute and 60 minute charts still remain in uptrends, so buying when they are oversold is still a viable strategy.
The negative for the market at the moment is that the VIX has been moving up.
Last week, the VIX spiked up 22.76%, to close at 11.29. This is above the major 10.94 level.
At this point, I feel that 12.50 should be major resistance for the VIX. ??If it fails at that level and turns down, the market should head up.
If it continues up and breaks through 12.50, look for the market to head down.
Earnings continue this week. Tomorrow afternoon we will hear from HD.
Wednesday morning we will hear from two retailers, TGT and PLCE.
And Wednesday afternoon, we will hear from CSCO and NTES.
Pre open, the S & P 500 is showing some weakness and should open lower.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
Major level: 12.50
Minor level: 12.11
Minor level: 11.33
Major level: 10.94
Minor level: 10.55
Minor level: 10.16 **
Major level: 9.38 <
Minor level: 8.99
Minor level: 8.20
Major level: 7.81
A close today above 10.16 and the VIX should test 12.50. I would still expect resistance at the 12.50 level.
10.94 should now be support. And 10.55 should also offer support.
$SPX:
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 level: 2,519.53
Major level: 2,500.00
Minor level: 2,484.3
The S & P 500 continues to trade right around the major 2,578.10 level.
To move higher, the S & P 500 will need two closes above 2,597.65 and to move lower, two closes under 2,558.58.
Watch for support at 2,574.50. Watch this level today.
QQQ:
Major level: 156.25
Minor level: 155.47
Minor level: 153.91 **
Major level: 153.13 < Hit
Minor level: 152.35
Minor level: 150.78
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
The QQQ closed at 153.68. 152.34 should be minor support.
And 153.13 should continue to be support. And 152.34 should also offer support.
IWM:
Minor level: 150.78
Major level: 150.00
Minor level: 149.22
Minor level: 147.66 ***
Major level: 146.88 <
Minor level: 145.32
Minor level: 144.53
Major level: 143.75
Minor level: 142.97
The IWM closed at 146.57, 31 cents under the major 146.88 level.
146.09 is the level to watch. If the IWM closes under 146.09, I would expect a drop to the 143.75 level.
TLT:
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
The TLT closed at 124.10, dropping under the 125 level.
At this point, the TLT is trading between the major 125 and major 123.44 levels. 125 should be resistance.
And if the TLT closes for two days under 123.44, it could drop to 118.
The TLT should open higher this morning. Watch to see if it can clear 125.
GLD:
Minor level: 125.78
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
Major level: 121.88 <
Minor level: 121.10 ***
Minor level: 119.53
Major level: 118.75
The GLD closed at 121.13. This is under the major 121.88 level. A close today under 121.88 and the GLD could drop to 115 and possibly 112.
Minor resistance is at 121.48.
XLE:
Major level: 73.44
Minor level: 72.66
Minor level: 71.09
Major level: 70.31 <
Minor level: 69.92 **
Minor level: 69.14
Major level: 68.75
Minor level: 68.36
Minor level: 67.58
Major level: 67.19
The XLE closed at 69.66. A close today under 69.92 implies a retest of 68.75.
69.14 is now short term support. Resistance is at 71.09.
The 60 minute chart is close to moving into an uptrend. If it can move into an uptrend, I expect the XLE to head higher.
FXY:
Major level: 89.06
Minor level: 88.67
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 <
The FXY closed at 84.58. Watch the 84.77 level. If the FXY can close above this level for two days, it should head up to 85.94.
84.38 is minor support. 84.96 is minor resistance.
AAPL:
Major levels for Apple are 175, 171.88, 165.63, 162.50, 159.38, and 156.25.
Yesterday, Apple closed at 174.67, just under the 175 level.
Minor support should be at 173.44 and 178.10 is minor resistance.
WATCH LIST:
Bullish Stocks: AMZN, NTES, ALGN, NVDA, AAPL, WYNN, MA, RCL, VMW, V, CRM, WDC, D, SPLK, LULU, FSLR, NKE, WGO
Bearish Stocks: AGN, WHR, UHS, UHS, TSRO, SRCL, ALK, PZZA, DVA, DAL, ALKS
Be sure to check earnings release dates.
