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
..........................................................................................
The S & P 500 closed with a modest one point drop to close at 2,601.42 yesterday. It did make a new high for the day, hitting 2,606.41.
This puts the S & P within 11 points of the 2,616.20 objective.
As the S & P 500 was making modest moves yesterday, the VIX closed 20 cents to the upside, at 9.85.
This is still below the upside confirming line of 10.16, so that level should still act as resistance.
But, for the day the S & P 500 formed a near perfect doji bar. This is when the close is approximately the open.
And the range for the day typically contracts. And that is what happened.
The daily range yesterday was only 7.54 points, as compared to the average true range of 12.41.
The doji bar can mean indecision ... or it can mean a pause before the move begins again.
The violation of the high or the low will typically tell you which way the next minor move will be.
Pre market, the S & P 500 is trading about 2.75 to the upside. Based on an open 2.75 points higher, watch to see if the S & P 500 can clear 2,606.41, which was yesterday's high.
The support area from yesterday's daily price bar is around the 2,602 area.
And support from last week's weekly price bar remains in the 2,591 area.
Yesterday's low was 2,601.42, which right around the support area from Friday's daily price bar, which I mentioned yesterday.
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
Minor level: 8.99
Minor level: 8.20
Major level: 7.81
10.94 and 10.16 should continue be resistance. To move up to 10.94, the VIX would need two closes above 10.16.
If the VIX does break the 10.94 level, I would expect strong resistance at 12.50.
On the downside, the minor 8.59 level has held as support the first time it was tested.
$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 objective should still be up to the 2,617 level. Yesterday's low was right around the minor 2,598.90 level. If this level is taken out, look for support at 2,592.80.
On the upside, 2,611 could offer minor resistance.
QQQ:
Major level: 162.50
Minor level: 160.94
Minor level: 157.81 **
Major level: 156.25 < Hit
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
Minor level: 152.35
Minor level: 150.78
Major level: 150.00
The QQQ closed at 156.19. The QQQ closed just under the 156.25 objective.
Next level on the upside is 157.81. Two closes above that level and the QQQ should run up to 162.50.
Minor support is at 155.47. 157.81 could offer minor resistance on the first attempt.
IWM:
Major level: 153.13 **
Minor level: 152.35
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
The IWM closed at 150.49. The IWM will now need two closes above 150.78 to move higher.
At this point, support should be a 150. If 150 is taken out, look for support at 148.44.
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
The TLT closed at 126.62. 126.17 should be minor support.
And 127.34 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 122.83. To move higher, the GLD will need two closes above 122.66. Yesterday was the first close above it.
125 should offer resistance. And minor resistance is at 123.44.
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 67.19. It closed exactly on the 67.19 level. Look for a bounce here.
If the XLE breaks under 67.19, look for a drop to 65.63.
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
The FXY closed at 86.44. The FXY took out the 85.94 objective. In fact, the FXY is just short of the next level above 85.94, which is 86.72.
Major support is at 85.94. If the FXY takes out 86.72, look for a move up to 87.50.
AAPL:
Major levels for Apple are 175, 171.88, 165.63, 162.50, 159.38, and 156.25.
Yesterday, Apple closed at 174.09, within one point of the 175 level.
172.66 should be minor support. 176.56 is minor resistance.
Short term momentum remains bullish.
WATCH LIST:
Bullish Stocks: NTES, AVGO, BA, SPY, BDX, STZ, ILMN, WYNN, ACN, DE, MA, CLX, RHT, WDAY, CBOE, LULU, VTR, CCL
Bearish Stocks: GS, MLM, AYI, TSRO, WAB, AIG, PZZA, WIX, PAG, OTEX, TBT, EPD, AR
Be sure to check earnings release dates.
