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.
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Short November 20th - $17.50 call @ $.20
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AA Long at $13.98
Short November 13th - $14.50 call @ $.25
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Friday, the S & P 500 closed 1.01 points lower. The day closed out at 3,509.44. But, after the massive move the market had last week, a pause was not unexpected.
The intra day range was only 38.24 points. This was 68% of the daily average true range which is now 64.70 points.
And Friday, the daily price bar closed at 68% of the range of the bar, which does project that the high of 3,521.58 should be violated before the low of 3,483.34.
And the support from Friday's daily bar should be in the 3,502 to 3,509 area.
And pre open, the S & P is trading a massive 145 points higher based on the election results here in the United States and positive news about a Covid 19 vaccine.
This projects to an open around 3,654.
The projected open would take out our upside objective, which is 3,593.60. In fact, the projected open would take out this level by about 61 points.
This would suggest that this level would be support on a pulback.
This would also put the S & P above the next minor level, which is 3,632.65. This level would also be a level to watch on a pullback.
The weekly price bar had a massive long range candle, which was particularly bullish.
For the week, the S & P closed 239.48 points higher. The range for the week was 249.31 points.
This was 173% of the range of the weekly average true range, which is 144.21 points.
And the weekly price bar closed at 92.1% of the range of the bar.
This also favors the high being violated before the low, which of course, should happen right at the open based on the projected massive gap open.
The support area from last week's weekly price bar should be in the 3,404 area. This should be a strong level of support.
Earnings continue this week. This afternoon we hear from RNG. And tomorrow after the close, we get earnings from AAP and LYFT.
Thursday, we hear from PDD and WIX. And After the close on Thursday, we get earnings from DIS.
Here are the Key Levels for the Markets:
$VIX:
Minor level: 41.40
Major level: 40.62
Minor level: 39.84
Minor level: 38.28
Major level: 37.50
Minor level: 36.72 **
Minor level: 35.16
Major level: 34.38 <
Minor level: 33.60
Minor level: 32.03
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 **
The VIX closed at 24.86. The VIX closed 2.72 points lower.
The VIX closed under the 25 level. The next minor level is 24.22. Two closes udner this level and the VIX should drop to 21.88.
The VIX broke under the midband on the daily chart. The midband is 27.87 points and should now be resistance.
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
Minor level: 3,085.95
Minor level: 3,007.85
Major level: 2,968.80
The S & P closed at 3,509.44. The S & P closed 1.01 points higher. The pre market activity suggests a massive bull gap.
Watch the midway point of the projected gap, which is 3,582 for support on a sell off.
Also, watch the minor 3,632.65 level. This could also provide support.
The 3,495 area should provide technical support.
QQQ:
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
Minor level: 273.44
Minor level: 270.31
Major level: 268.75
The QQQ closed at 294.61. The QQQ closed .22 higher.
Watch the minor 295.31 level for support.
Support should be at the 292 level.
Like the S & P, the QQQ took out the midband on the 60 minute chart. This level should now be support. The midband is 280.
IWM:
Major level: 168.75
Minor level: 167.19
Minor level: 164.06
Major level: 162.50 HIT
Minor level: 160.94
Minor level: 157.81 **
Major level: 156.25
Minor level: 154.70
Minor level: 151.56
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
The IWM closed at 163.62. The IWM closed 1.29 lower on the day.
The minor 164.06 level should be support.
A close today above this level and the IWM should test 168.75.
The midband on the 60 minute chart which is 156 and should now be support.
163 should be technical support.
TLT:
Minor level: 169.53
Major level: 168.75
Minor level: 167.97
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
The TLT closed at 159.41. It closed 1.95 lower. A close today under 158.60 and the TLT should drop to 156.25.
The TLT broke the midband on the 60 minute chart. That level is 161.02. This level should now be resistance.
161 should be technical resistance.
GLD:
Minor level: 188.28
Major level: 187.50
Minor level: 186.72
Minor level: 185.16
Major level: 184.38 <
Minor level: 183.60
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: 171.89
The GLD closed at 183.19. The GLD closed .26 higher on the day.
Look for a move up to 184.38.
The GLD is almost at the upper band on the 60 minute chart. This level is 183.19 and should be resistance.
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 28.93. The XLE closed .64 lower on the day.
Watch the major 28.13 level for support.
The XLE projects to open above the midband on the 60 minute chart. This level is 30.09 and should be support.
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 118.69. Apple closed $.13 higher.
Watch the next minor level in the upside, which is 115.63. A close today above this level and Apple should head up to 125. And 125 should be the objective.
And look for support at 115.63.
Apple cleared the midband on the 60 minute chart. That level is 115 and should now be support.
WATCH LIST:
Bullish Stocks: GOOGL, TTD, IDXX, ALGN, LRCX, UNH, FB, QDEL, KLAC, CMI, RMD, LH, IT, HON, QCOM, FFIV, BIDU, XLNX, ZEN, MIDD
Bearish Stocks: CRI, INGR, PRU, LEG, VLO, THS, CF, FANG, HFC
