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
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DYN Long at $12.55
Premium Collected $0.48
APA Long Oct $47.50 Call at $3.45
SNAP Long at $15.20
SNAP Short Oct 13th - $15.50 Call at $0.30
Premium Collected - $0.58
AMC Long at $15.27
AMC Short Oct $16 Call at $0.43
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Yesterday's price action for the S & P 500 was a near perfect doji. A doji, as you recall, is when the open is approximately the close.
The market opened at 2,549.99 and closed at 2,550.64, so the close was within 65 cents of the open.
Even though the S & P 500 has an upside objective at 2,578.10, it does not mean that it cannot pause before running up to the objective.
The doji mean indecision or it can mean a pause before the move continues.
For today, it will be important to watch for the violation of yesterday's high or low. The expectation is that price could move in the direction of the violation.
Yesterday's high was 2,555.23 and the low was 2,544.86. 2,550 should also be a key level for today.
Short term intra day charts still remain in uptrends. So, if the market does pullback, there should an opportunity to buy the market once it finds support.
The VIX could not close above 10.16, so it would still need two closes above 10.16 to move higher. A reversal or a move down on the VIX should indicate that the markets will head higher. 10.94 should act as resistance.
Pre open, the market is trading about 2 points to the downside.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
Major level: 15.63
Minor level: 14.85
Minor level: 13.28
Major level: 12.50
Minor level: 11.72
Minor level: 10.16
Major level: 9.38 <
Minor level: 8.99 **
Minor level: 8.20
Major level: 7.81
The VIX closed at 10.08. 10.55 should be minor resistance. And 10.94 should also be resistance.
To move lower, the VIX will need two closes under 8.99. To move higher, the VIX would need one more close above 10.16.
$SPX:
Major level: 2,578.10 <
Minor level: 2,558.60
Minor level: 2,548.85 **
Major level: 2,539.10 <
Minor level: 2,529.33
Minor level: 2,509.78
Major level: 2,500.00
Minor level: 2,492.20
Minor level: 2,476.00
Major level: 2,468.80
The objective is still to 2,578. 2,539 should offer support.
2,558.60 could offer resistance.
QQQ:
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
Minor level: 135.94
Minor level: 132.81
The QQQ closed at 147.60. The QQQ continues to move up to the 150 objective.
The minor support is still at 147.27. 148.83 could offer minor resistance.
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 149.86. To move lower, the IWM would need two closes under 149.22.
151.56 could offer minor resistance and 148.83 is minor support.
TLT:
Major level: 131.25
Major level: 130.47
Minor level: 128.91
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 <
The TLT closed at 124.18. The high for the day was 124.87, just 13 cents under the 125 level.
125 is minor resistance and 123.44 is minor support.
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 122.40. 122.66 is minor resistance. 121.09 should be minor support.
Major resistance should be at 125.
XLE:
Major level: 71.89
Minor level: 71.11
Minor level: 69.54
Major level: 68.75 **
Minor level: 67.97
Minor level: 66.41
Major level: 65.63
Minor level: 64.85
Minor level: 63.28
Major level: 62.50
The XLE closed at 68.27. I would not expect the XLE to drop under 67.77.
68.07 should be minor support. 68.95 could offer 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 85.47. The objective should still be down to 84.38.
85.55 should offer minor resistance. 84.96 is minor support.
AAPL:
Major levels for Apple are 165.63, 162.50, 159.38, 156.25, 153.13, and 150.
Apple closed at 155.90, up 6 cents on the day.
Apple closed above the mid band on the 30 minute chart. That level is 155.13. Watch to see if this level holds. Also, the 30 minute chart crossed into an uptrend.
Momentum is shifting to the upside.
157.03 should also be a resistance level. And 155.08 is minor support.
WATCH LIST:
Bullish Stocks: GOOGL, LMT, NOC, SPY, MMM, GD, STZ, BA, NFLX, NVDA, CMI, AET, HON, CME, UTX, CHKP
Bearish Stocks: RL, WBA, PZZA, WOR, FL, PBH, BBBY
Be sure to check earnings release dates.
