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 $1.06
ET Long at $11.78
Premium Collected $0.35
ET Long at $7.50
Premium Collected $0.60
MFA Long at $4.20
Premium Collected $0.95
PRA Long at $16.45
Premium collected $1.00
BOX Long at $17.65
Premium Collected $.40
GILD Long Dec 11th - $60 Call @ $2.20
GILD Short Dec 11th - $65 Call @ $.45
AAPL Long Dec 4th - $118 Call @ $2.93
AAPL Short Dec 4th - $122 Call @ $1.33
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Before I begin today's update, I want to mention that the markets are closed here in the States in observation of Thanksgiving. And Friday is a short trading day with the markets closing at 1:00 EST.
Because of the Holiday, this will be the last update of the week.
Enjoy the Thanksgiving Holiday and the long weekend!
Yesterday, I did suggest you close the short $122 call on Apple. The idea is to book the profit on the oversold condition. If Apple does bounce, we will have the option to close the long call or sell more calls against the open position.
I also suggested you buy back the short $65 call on GILD. By closing yesterday, you captured 73% of the maximum gain on the option. And it frees up the position to perhaps sell more calls on a follow-through.
The S & P 500 managed to close 57.82 points higher on the day, managing to break out of the range it has been trading in.
The S & P closed at 3,635.41.
The S & P hit the target we have been looking for, which was 3,632.65. The market managed to close 2.76 points above the objective.
The high for the day was 3,642.31, which was 9.66 points above the target.
And the range for the day ended up at 47.79 points. This was still less than the daily average true range, which is 55.90 points, but it is the largest range in two weeks, with the exception of the 51.76 point range last Wednesday.
The low for the day was 3,594.52, which was 3 points below the projected midpoint of the bullish gap yesterday.
I mentioned that support should be around 3,598 in yesterday's update.
Pre open, the S & P is trading about 4 points lower.
This projects to an open around 3,631.
Support from yesterday's daily bar is down around 3,618.
And watch the close of 3,635.41. If the S & P can move above the close, it should be support.
NVDA reports this afternoon, after the close.
And INTU and WDAY report Thursday after the close.
Here are the Key Levels for the Markets:
$VIX:
Major level: 31.25
Minor level: 30.47
Minor level: 28.91
Major level: 28.13
Minor level: 27.35
Minor level: 25.78
Major level: 25.00
Minor level: 24.22
Minor level: 22.66 **
Major level: 21.88 Hit!
Minor level: 21.10
Minor level: 19.53
Major level: 18.75
The VIX closed at 21.64. The VIX closed 1.02 points lower.
The VIX hit the 21.88 target and manage to close just under it.
24.22 and 22.66 should be resistance.
And on the downside, watch the 21.10 level.
Technical resistance is around 22.
S & P 500:
Major level: 3,749.80
Minor level: 3,710.75
Minor level: 3,632.65 **
Major level: 3,593.60 <
Minor level: 3,554.55 **
Minor level: 3,476.45
Major level: 3,437.40
Minor level: 3,398.35
Minor level: 3,320.25
Major level: 3,281.20
Minor level: 3,242.15
Minor level: 3,164.00
Major level: 3,125.00
The S & P closed at 3,635.41. The S & P closed 57.82 points higher.
Watch for support at the minor 3,554.55 level again. And at the major 3,632.65 level.
The S & P has now moved 408 points since the October 30th bottom.
A 3 level move would put the market at 3,702. And the upper band on the daily chart is 3,884.
QQQ:
Major level: 300.00
Minor level: 298.44
Minor level: 295.31 **
Major level: 293.75 <
Minor level: 292.19 **
Minor level: 289.06
Major level: 287.50
Minor level: 285.94
Minor level: 282.81
Major level: 281.25
Minor level: 279.69
Minor level: 276.56
Major level: 275.00
The QQQ closed at 294.47. The QQQ closed 4.08 higher.
The QQQ close above the major 293.75 level. The next level is 295.31. Two closes above this level the QQQ should test 300.
The upper band on the weekly chart is 291.98 and the QQQ is just under it. Watch to see if it can clear it. And the QQQ cleared it.
The 292.19 level should also be minor support.
IWM:
Major level: 187.50
Minor level: 181.25
Minor level: 176.56 **
Major level: 175.00
Minor level: 173.44
Minor level: 170.31
Major level: 168.75
Minor level: 167.19
Minor level: 164.06
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25
Minor level: 154.70
The IWM closed at 184.22. The IWM closed 3.40 higher on the day.
The objective for the IWM should still be 187.50.
I am looking for a retest of the upper band on the 60 minute chart. That level is 186.
180 should be technical support.
TLT:
Minor level: 166.41
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
Minor level: 153.91
Major level: 153.13
The TLT closed at 159.17. It closed 1.60 lower.
160.16 should be resistance now. And watch the 158.60 level on the downside.
The TLT is back to the midband on the 60 minute chart. That level now is 159.17.
Watch this level because if the TLT cannot recoup the midband, look for a move lower.
GLD:
Minor level: 182.03
Major level: 181.25
Minor level: 180.47
Minor level: 178.91
Major level: 175.00
Minor level: 174.25
Minor level: 172.70
Major level: 171.88 <
Minor level: 171.10 **
Minor level: 169.53
Major level: 168.75
The GLD closed at 169.59. The GLD closed 2.64 lower on the day.
A close today under 171.10 and the GLD should drop to 168.75.
The major 171.88 level should be resistance now. And so should 171.70.
The GLD is now oversold. It is right under the lower band on the 60 minute chart. That level is 170.98. Watch to see if it can recoup this level today.
XLE:
Minor level: 41.41
Major level: 40.63 <
Minor level: 39.83
Minor level: 38.28 **
Major level: 37.50
Minor level: 36.72
Minor level: 35.15
Major level: 34.37
Minor level: 33.59
Minor level: 32.03
Major level: 31.25
Minor level: 30.47
Minor level: 28.90
Major level: 28.13
The XLE closed at 40.31. The XLE closed 1.97 higher on the day. And it closed above the midband on the daily chart. That price level is 39.25.
Target should be to 40.63.
Support is at 38.28 and at 39.25.
The XLE did close back above the upper band on the 60 minute chart, which is now 39.26.
AAPL:
Minor level: 140.63
Major level: 137.50
Minor level: 134.38
Minor level: 128.13
Major level: 125.00
Minor level: 121.88
Minor level: 115.63 **
Major level: 112.50
Minor level: 109.13
Minor level: 103.13
Major level: 100.00
Apple closed at 115.17. Apple closed $1.32 higher.
Watch the minor 115.63 level. It needs to clear this level to head higher.
Apple did break under the midband on the 60 minute chart. That level is 116.74.
Short term, Apple is oversold. Closed the short calls yesterday. On a bounce, will adjust the position further.
WATCH LIST:
Bullish Stocks: TTD, TSLA, RH, LRCX, MSCI, CTAS, ZBRA, PODD, ROKU, ADSK, KLAC, URI, EDU, MMM, CAT, CBRL, DIS, XLNX, AAXN, KEYS
Bearish Stocks: AEP, BLUE, NRG, CHL, LMNX, FE