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.
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 $14.54
Total Premium Collected - $1.65
OI Long Feb $19 call @ $1.70
OI Short Feb $22 call @ $0.55
UNIT Long at $19.35
UNIT Short Oct $20 call @ $0.45
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This week we have one position that expires tomorrow. That is the short $20 call on UNIT. Surprisingly, the $20 call that expires tomorrow is holding value. I will send a separate email if an adjustment is required. At this point, hold the short calls.
After the bounce on Tuesday, the market is trying to regain this upmove.
This is not unusual because of the fact that the S & P 500 had fallen under the lower extreme bollinger band on both the 30 minute and 60 minute charts.
And conversely, the VIX broke above the upper band on its 60 minute chart.
This tells us that a retest of the lower band for the S & P 500 is not out of the question.
For the day, the S & P 500 closed at 2,809.21, down .71 points.
The low for the day was 2,781.81. This was 1.39 points below the minor 2,783.20 support level I mentioned yesterday.
And yesterday, we had another divergence between the VIX and the
S & P 500.
They both closed to the upside.
The support level from yesterday's daily bar is in the 2,800 to 2,810 area.
2,822 could offer resistance from last week's weekly bar.
Pre open, the S & P 500 is trading about 11 points lower.
Continue to monitor the levels as I mentioned.
Here are the Key Levels for the Markets:
$VIX:
Major level: 25.00
Minor level: 23.44
Minor level: 20.31
Major level: 18.75 <
Minor level: 17.19
Minor level: 14.06 **
Major level: 12.50
Minor level: 10.94
Minor level: 7.81
Major level: 6.25
The VIX closed at 17.40. To move lower, the VIX will need two closes under 17.19.
Minor support is still at 15.63. Also, technical support is at 14.30.
18.75 should be resistance.
SPX:
Major level: 2,939.50
Minor level: 2,927.28
Minor level: 2,902.83
Major level: 2,890.60
Minor level: 2,878.40
Minor level: 2,854.00
Major level: 2,841.80
Minor level: 2,829.60
Minor level: 2,805.20 **
Major level: 2,793.00
Minor level: 2,780.78
Minor level: 2,756.33
Major level: 2,744.10
Minor level: 2,731.90
Minor level: 2,707.50
Major level: 2,695.30
The market opens lower. Most likely around 2,798.
Watch to see if the S & P 500 can recoup the minor 2,807.60 level. If it can, it should head higher.
2,783.20 should still offer minor support.
We have had two closes above 2,805.20, so I would expect a retest of 2,841.80.
Short term charts do remain bearish, so another drop should happen before heading higher.
QQQ:
Major level: 193.75
Minor level: 192.19
Minor level: 189.06
Major level: 187.50
Minor level: 185.94
Minor level: 182.81
Major level: 181.25
Minor level: 179.69
Minor level: 176.56 **
Major level: 175.00
Minor level: 173.44
Minor level: 170.31
Major level: 168.75
The QQQ closed at 177.29. 175 should now offer support. And I would expect a test of 181.25.
If the QQQ can clear the minor 178.13, it should head higher.
IWM:
Major level: 168.75
Minor level: 167.19
Minor level: 164.06
Major level: 162.50
Minor level: 160.94
Minor level: 157.81 **
Major level: 156.25
Minor level: 154.69 **
Minor level: 151.56
Major level: 150.00
The IWM closed at 157.96. The IWM has had two closes above 157.81, so a test of 162.50 is likely.
156.25 should offer support.
The lower band on the 60 minute is 152.50. And 153 should offer technical support.
TLT:
Major level: 115.63
Minor level: 115.24
Minor level: 114.45
Major level: 114.06
Minor level: 113.67
Minor level: 112.89
Major level: 112.50
The TLT closed at 114.00. 114.45 is minor resistance.
And if the TLT has two closes under 113.67, it should drop to 112.50.
We were looking for an area for the TLT to stall out and it appears that it is around the minor 114.84 area.
GLD:
Major level: 117.19
Minor level: 116.80
Minor level: 116.02 **
Major level: 115.63 <
Minor level: 114.85
Minor level: 113.28
Major level: 112.50
Minor level: 111.72
Minor level: 110.16
Major level: 109.38
The GLD closed at 115.79. Like the TLT, the GLD bounced off its oversold condition.
117.19 should be resistance.
I would not expect this bounce to move higher than 118.75.
Two closes above 116.02 and the GLD should test 118.75. Look for resistance at 116.80.
XLE:
Major level: 78.13
Minor level: 77.35
Minor level: 75.78
Major level: 75.00 <
Minor level: 74.22
Minor level: 72.66 **
Major level: 71.88
Minor level: 71.10
Minor level: 69.53
Major level: 68.75
The XLE closed at 72.53. 71.88 should offer support. And watch to see if the XLE can clear 72.66.
If the XLE can hold 72.66, should retest 75.
The 60 minute chart remains bullish. 71.88 is a key level for the XLE and should offer support.
FXY:
Major level: 85.94 <<
Minor level: 85.75
Minor level: 85.36 ***
Major level: 85.16 <
Minor level: 84.97
Minor level: 84.58
Major level: 84.38
Minor level: 84.18
Minor level: 83.79
Major level: 83.59
The FXY closed at 84.95, back under the minor 84.97 level. This now sets up a scenario where if the FXY can close under 84.97 today, the FXY should drop to 84.38.
84.38 should offer support.
AAPL:
Major level: 231.25
Minor level: 229.69
Minor level: 226.56
Major level: 225.00
Minor level: 223.44
Minor level: 220.31 **
Major level: 218.75
Minor level: 217.19
Minor level: 214.06
Major level: 212.50
Apple closed at 221.19. Apple should test 225. Look for lower levels to offer support.
Support should be at 218.75.
WATCH LIST:
Bullish Stocks: ESL, PEG, CHL, PYX, XOXO, NYT, VALE
Bearish Stocks: TSLA, FDX, BIDU, MMM, MLM, BABA, IBM, ITW, CB, SAGE, RCL, OLED, KLAC, ITW, KLAC
Be sure to check earnings release dates.