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
THC Long at $14.63
Premium Collected - $1.40
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The shortened trading week began with the S & P 500 closing modestly higher. The S & P 500 closed at 2,582.14, up 3.29 points on the day.
The major 2,578.10 level continues to hold as support. Yesterday's low was 2,578.24, just 14 cents above the major support level. By knowing where major support should be, you can literally buy the low of the day.
Support from yesterday's daily price should now be around 2,581.
The major event from yesterday was the VIX closing under the 10.94 level. As I mentioned yesterday, if the VIX closes for two days under 10.94, it could drop to as low as 6.
This would be historic because the 9.38 level has acted as support for years.
Is this the run where the VIX breaks through?
I can't answer that just yet, but I do feel the odds favor the VIX falling under 9.38.
For the day, the VIX was down 6.82%. This is a big drop considering where the VIX is trading.
Pre open, the S & P 500 is trading about 9 points to the upside. The upside confirming line of 2,587.88 should be tested today.
PANW reports today after the close.
And DE reports Wednesday before the open.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
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 <
Minor level: 10.55 **
Minor level: 10.16
Major level: 9.38
The VIX close at 10.65 yesterday. At this point, the 10.94 level continues to be the key level to watch.
If the VIX closes under 10.94 for two days, I feel it could drop to 9.38 and possibly 7.81. And even lower.
Of course, a drop to 7.81 would be historic, but I do feel it would be possible if that should occur.
Two closes under the minor 10.55 level should confirm a move down to 9.38.
12.50 should still be major resistance.
$SPX:
Minor level: 2,626.98
Major level: 2,617.20
Minor level: 2,607.43
Minor level: 2,587.88 <
Major level: 2,578.10 **
Minor level: 2,568.35
Minor level: 2,548.85
Major level: 2,539.10
Minor level: 2,529.33
The S & P 500 will need two closes above 2,587.88. Look for it to be tested today.
2,583 should be short term support. If it is violated, look for short term support at 2,570.80.
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 153.83, closing 8 cents under the minor 153.91 level.
The target should still be to 156.25.
154.49 should offer short term support. And minor resistance is at 155.47.
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 149.53. The IWM is within reach of the 150 level.
148.44 should now be minor support. 151.56 could offer minor resistance.
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 126.34. I would expect the 128.13 level to be retested.
125.98 should now be support. And 126.95 is minor resistance.
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 121.31. With the GLD breaking under the 121.88, it should now be resistance.
The 121.88 level is a major level. If the GLD closes under 121.88 today, it could drop to as low as 112.
I still expect major resistance at 125. 121.88 should now be resistance.
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 67.27, closing for the second day above the 67.19 major level.
Watch to see if this holds. 67.19 should now be support.
Also, the XLE needs to clear the midband, which is 67.80 to move higher. And finally, two closes above 67.58 would confirm a move up to 68.75.
FXY:
Major level: 85.94
Minor level: 85.75
Minor level: 85.36
Major level: 85.16 <
Minor level: 84.96
Minor level: 84.55
Major level: 84.38
After clearing the 85.16 level, the FXY tested the level yesterday. The low for the day was 85.17.
85.16 is minor support. 85.94 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 169.98. Watch to see if Apple holds support at the 168.75 level.
With both the 30 & 60 minute charts in uptrends, buying is the best course of action, as opposed to shorting.
WATCH LIST:
Bullish Stocks: AMZN, NTES, AVGO, BA, ALGN, BABA, FB, MCD, HON, ACN, CME, CLX, RHT, CBOE, WDAY, WDC, VLO, SPLK, AABA
Bearish Stocks: GS, UHS, TSRO, TAP, GWR, BG, MMP, SRCL, PZZA, APC, WES, WOR, WOR, ACM
Be sure to check earnings release dates.
