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.
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This market just doesn't want to roll over. When you start to think that the market will correct, it just finds support and keeps moving back up.
As I mentioned yesterday, I felt that closing above the 2,578.10 level for two straight days would indicate this market would head higher.
And for the bulk of the day yesterday, the market traded well under that level.
The S & P 500 hit a low of 2,566.17 or about 13 points under the key level.
After stopping at the low, the market managed to rally back and close above 2,578.10.
As I said yesterday, I do believe the fact that the market has closed for two days above 2,578.10 indicates it can go much higher.
Of cousre there will be the usual pullbacks along the way, but this is still not the time to think about shorting. There is still too much strength in the market to consider that.
I also keep mentioning that the VIX should sell off against higher levels of resistance and that continues to be the pattern.
Yesterday, the VIX got as high as 10.89 before selling off. This of course, was just under the minor 10.94 level. And with the VIX dropping, that is the indication that the market should rebound.
Apple is trading about 6.50 points to the upside after reporting.
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
10.55 should still be resistance. Minor support should be at 8.59.
I still expect a retest of 9.38.
$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: 2,484.38
Look for higher highs in the market.
2,574.50 is minor support and 2,592.80 is minor resistance.
Short term momentum still remains bullish.
QQQ:
Major level: 153.13 <
Minor level: 152.35
Minor level: 150.78 ***
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
Minor level: 142.18
Minor level: 139.06
Major level: 137.50
The QQQ closed at 151.81. The objective should still be to 153.13.
Yesterday's low was 150.77, just one cent under the minor 150.78 support level.. Look for resistance at 153.91. And minor support at 151.56.
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 148.71. 148.05 should now be minor support. And minor resistance is at 150.78.
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 jumped, closing at 125.30. The TLT will need two closes above 125.78 to move up to 128.
I still expect resistance at 125.78.
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 121.19. At this point, 121.88 should be resistance. If 121.88 is violated, major resistance should be at 125.
Resistance is at 121.29. And minor support is at 120.70.
XLE:
Minor level: 69.14
Major level: 68.75
Minor level: 68.36
Minor level: 67.58
Major level: 67.19 <
Minor level: 66.80
Minor level: 66.02
Major level: 65.63
Minor level: 64.85
The XLE closed at 68.48. The XLE closed above the mid band, which is 67.74. This level should now be support.
A close today above 69.36 and the XLE should move up to 70.31.
68.36 is minor support. And 69.14 is minor resistance.
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 84.20. The FXY broke under the 84.38 level, which indicates it should head lower.
82.81 should offer minor support. And 84.38 should now offer minor resistance.
AAPL:
Major levels for Apple are 165.63, 162.50, 159.38, 156.25, 153.13, and 150.
Apple reversed yesterday and close down 2.15 on the day. Watch the 162.50 and 165.63 support levels.
Apple should open higher after reporting. Bias to the long side.
WATCH LIST:
Bullish Stocks: AMZN, GOOGL, NTES, ALGN, AVGO, MMM, UNH, NVDA, NFLX, AAPL, APD, ITW, CAT, MAN, DE, DATA, MSFT
Bearish Stocks: ULTA, AYI, UHS, DPS, AAP, TAP, PZZA, WBA, TSCO
Be sure to check earnings release dates