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
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 20th - $16.00 Call at $0.65
Premium Collected - $1.20
AMC Long at $15.27
AMC Short Oct $16 Call at $0.43
THC Long at $14.63
THC Short Oct $15 call at $0.40
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The market continues to tick up. The S & P 500 closed at 2,557.64, up 4.47 points on the day. The high for the day was 2,559.47, which puts the market within 20 points of the 2,578.10 objective.
Yesterdays low was 2,552.64, which puts it squarely in the support areas I mentioned yesterday.
The first area is the support from last week's weekly price bar, which was the 2,549 to 2,552 area. I also mentioned that you want to watch last week's low, which was 2,542.60 and yesterday's low came within 4 cents of it before the market reversed.
Support from yesterday's daily price bar should be around 2,556.
But, once again the market contracted. Yesterday's range was only 6.83 points. And now the average true range is 10.02, and that is dropping as well.
With an upside objective above the market, I am still biased for a move higher. I can't argue with my levels, as they have consistently worked during this bull market.
NFLX reported last night and it is trading slightly higher. Goldman Sachs is also trading to the upside after reporting.
The market is relatively flat, so watch the daily level I mentioned above for support.
And finally, tomorrow is our webinar. If you have any questions or charts you would like me to review, please email me directly at davismdt@gmail.com.
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 9.91. Resistance for the VIX is in the 10.16 to 10.55 area. And with a close under 10.16, that minor level should also offer resistance.
The VIX is trying to clear the 9.96 minor resistance level. Watch this level as well.
$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. 2,548.80 is a minor support level.
2,555.50 should also be a minor support level.
2,561.00 could offer resistance. Short term momentum remains bullish.
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 148.85. The QQQ continues to move up to the 150 objective. Yesterday's high was within 1.20 points of the 150 objective.
The minor support is at 148.63. 149.61 could offer minor resistance. Short term momentum remains bullish.
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 149.24. To move lower, the IWM would need two closes under 149.22. And yesterday's close was still above the downside level.
150.39 could offer minor resistance and 149.02 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 125.76. The TLT will still need two closes above 125.78 to move to 128.13.
126.17 is minor resistance and 125.20 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 122.97. Look for a retest of 121.88. 122.66 should be minor resistance.
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 68.29. The XLE continues to hold above the midband on the daily chart. The midband is 67.73.
68.07 should be minor support. 69.46 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 85.63. The major level now is 85.94. The FXY got just above the major 85.94 level before selling off.
85.35 should offer minor support. 85.74 should offer minor resistance.
AAPL:
Major levels for Apple are 165.63, 162.50, 159.38, 156.25, 153.13, and 150.
Apple closed at 159.88, closing up 2.89 on the day. I would expect a retest of 162.50.
160.16 should also be a resistance level. And 158.59 is minor support.
WATCH LIST:
Bullish Stocks: GOOGL, AMZN, BIIB, LMT, BIDU, BA, FDX, MMM, ALGN, RTN, FB, ASML, PANW, MA, URI, JNJ, CAT, RHT, CHKP, UTX, ADSK, V, KLAC
Bearish Stocks: ULTA, DIS, AAP, RL, KHC, WBA, TSCO, DXCM, GE, AOBC, CCJ, BBBY
Be sure to check earnings release dates.
