While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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
RRC Long at $11.85
Total Premium Collected $0.70
RRC Long at $9.20
RIG Long at $8.81
Premium Collected - $1.45
FEYE Long at $17.18
Total Premium Collected $0.80
FDX Long Nov 22nd- $157.50 Call at $1.25
FDX Short Nove 22nd - $160 Call at $0.55
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Yesterday I suggested a short term call debit spread on FDX, using the front week calls. It is imperative that you do not put outsized positions on these trades. Money management is key.
I am going to go out on a limb and say that our upside objective of 3,125 was hit. Yesterday's high actually went to 3,124.17.
On an index that is over 3,000, I would say that coming within 1 point of the objective qualifies as getting hit.
If that did not qualify, it certainly should right at the open, with the S & P 500 trading about 8 points higher.
The S & P closed out at 3,122.03 yesterday. And the daily bar closed at 82% of the range, which does suggest that the high will be violated before the low. And based on the pre market trading this should be the case.
The low for the day came in at 3,112.06. This was right around the lower end of the support area from Friday's daily bar.
The support area for today should be in the 3,118 to 3,120 area.
The range for the day was only 12.11 points. Once again, the market contracted. The daily range was only 57% of the daily average true range.
And yesterday's daily bar formed a narrow range doji.
This can mean indecision or it can be a pause before the move continues.
And with a projected higher open, look for support at yesterday's high. So, watch 3,124.17 on a pullback.
The support from last week's weekly price bar, which is in the 3,098 to 3,100 area should still be valid support.
HD reported and is trading about $9 lower after reporting.
And JWN and ROST report Thursday after the close.
Here are the Key Levels for the Markets:
$VIX:
Major level: 21.88
Minor level: 21.10
Minor level: 19.53
Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.85
Minor level: 13.28
Major level: 12.50 <
Minor level: 11.72
Minor level: 10.16
Major level: 9.38
The VIX closed out at 12.46 yesterday. The VIX closed under the major 12.50 level.
The VIX got as high as 13.10 before selling off. As you know, 13.28 should still be resistance,until the VIX can close above it.
With a break under 12.50, it should now be resistance.
11.72 is a support level on the downside. If the VIX breaks under under it, I would expect a test of 9.38.
SPX:
Minor level: 3,164.08
Major level: 3,125.00 <
Minor level: 3,085.95 ***
Minor level: 3,007.85
Major level: 2,968.80
Minor level: 2,929.73
Minor level: 2,851.58
Major level: 2,812.50
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30
The S & P closed at 3,122.03. The S & P is within 1 point of the 3,125 objective and should take it out at the open.
And with a projected open about 8 points higher, the objective should be taken out at the open.
3,115 should be a minor support level. And 3,134 could offer resistance on the upside.
Technical support is around 3,100.
QQQ:
Minor level: 203.91
Major level: 203.13 HIT
Minor level: 202.35
Minor level: 200.78
Major level: 200.00
Minor level: 199.22
Minor level: 197.77
Major level: 196.88
Minor level: 196.10
Minor level: 194.53
Major level: 193.75
The QQQ closed at 203.07. Like the S & P hitting the 3,125 objective, the QQQ hit the 203.13 objective.
The next minor level on the upside is 203.91. And on the downside, it is 202.35.
Technical support should be around the 202 area.
IWM:
Major level: 162.50 <
Minor level: 160.94
Minor level: 157.81 **
Major level: 156.25
Minor level: 154.69
Minor level: 151.56
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
The IWM closed at 158.52. The target for the IWM should still be to the 162.50. Still lagging the SPX and the QQQ.
The IWM continues to hold the minor 157.81 level. If the IWM does break under this level, I would expect strong support at 156.25. Yesterday's low went to 157.94 or 13 cents above the minor 157.81 level.
159.38 is a minor resistance level. The IWM needs to clear this level to move higher. Watch this level again today. If the IWM cannot clear it, it would signal we should see a pullback.
And 157.81 should still offer support.
Technical support is around 158. The IWM needs to clear this level to head higher.
TLT:
Major level: 143.75
Minor level: 142.97
Minor level: 141.41
Major level: 140.63
Minor level: 139.85
Minor level: 138.28
Major level: 137.50 <<
Minor level: 135.84 **
Minor level: 132.81
Major level: 131.25
The TLT closed at 138.01. The TLT bounce got just above 137.50.
The TLT will need two closes above 138.28 to move up to 140.63. It should be resistance until it is cleared.
Short term charts remain bearish.
And the 138 area should still offer technical resistance. And 136 support.
GLD:
Major level: 143.75
Minor level: 142.97
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
The GLD closed at 138.62. If the GLD can close above 138.28 today, it should head up to 140.63.
The key level is 134.38 on the downside. If the GLD has two closes under this level, it could drop to 125.
Short term, there is technical resistance at 140. And technical support is still around 138.
XLE:
Minor level: 63.28
Major level: 62.50
Minor level: 61.72
Minor level: 60.16 **
Major level: 59.38 < Hit
Minor level: 58.60
Minor level: 57.03
Major level: 56.25
Minor level: 55.86
Minor level: 55.08
Major level: 54.69
The XLE closed at 59.35. The objective should be to 62.50. But, the XLE droped under the major 59.38 level. It will have to clear this level to head higher.
Yesterday's low went to 59.10 or about 25 cents below the major 59.38 level. Watch to see if the XLE recoup this level today.
The 58.70 area should offer technical support.
AAPL:
Major level: 281.25
Minor level: 277.35
Minor level: 269.54
Major level: 265.63 HIT!
Minor level: 261.72
Minor level: 253.91
Major level: 250.00
Minor level: 246.88
Minor level: 240.63
Major level: 237.50
Apple closed at 267.10. At this point, the major 265.63 level should offer support.
Apple will need two closes above 269.54 to move up to 281.25.
The upper band is now 265.84. This should now be support until it closes under it.
Technical support should be in the 263 area.
WATCH LIST:
Bullish Stocks: GOOGL, CHTR, LMT, HUM, SPY, COST, ADBE, AMGN, VRTX, QQQ, OLED, FB, GD, V, KLAC, ADP, DECK, ROKU
Bearish Stocks: AAP, ADS, TAP, IRBT, NUS, OXY, GOOS, NTGR, EBIX
Be sure to check earnings release dates.
