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.
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
RRC Long at $11.85
Total Premium Collected $0.70
RRC Long at $9.20
RIG Long at $8.81
Premium Collected - $1.45
FEYE Long at $17.18
Total Premium Collected $0.80
DVA Long November 15th - $57.70 call for $1.80
DVA Long November 15th - $55.00 put for $1.95
.........................................................................................
The S & P 500 closed 8.26 points higher on the day. It closed out at 2,997.95.
The high for the day was 3,008.29 and after hitting the high, the market sold off the majority of the day.
This should be no shock as we knew before the open yesterday that the minor 3,007.85 level should be resistance. I mentioned that it should be resistance until the market can close above it.
The high ended up being 44 cents above the minor 3,007.85 level.
Knowing that price allowed you to short at that price and capture about a 16-point swing.
The range for the day contracted. The daily range was 50% of the daily average true range.
And the day closed out at 37% of the daily bar. This does suggest that there is a slight bias for the low being violated before the high.
The resistance level from yesterday's daily bar is in the 3,000 area. Watch to see how the market reacts around this level.
In looking at how the weekly price bar is shaping up, we see that through yesterday it is a bullish price bar.
Yesterday's close is above the midpont, which is 2,985.62 and it is above last week's high which was 2,993.28.
With a close yesterday of 2,997.95, the market is about 5 points above last week's high.
Watch to see if the market can hold this level on a pullback.
Pre open, the S & P is trading about 2 points higher. Watch the key levels I discuss above.
Here are the Key Levels for the Markets:
$VIX:
Major level: 25.00
Minor level: 24.22
Minor level: 22.66
Major level: 21.88
Minor level: 21.10
Minor level: 19.53
Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.85 **
Minor level: 13.28
Major level: 12.50
The VIX closed at 13.83 yesterday. Yesterday's low was 13.31 or 81 cents above the 12.50 level.
I still expect a push down to 12.50, but it is the long term support level which suggests a pullback in the market should be coming.
As you know, the 12.50 area is a key long term support level for the VIX and a bounce usually happens. Minitor this level closely.
14.06 should be minor resistance. If the VIX can clear 14.06, it should be support. But, until then it is resistance.
SPX:
Minor level: 3,164.08
Major level: 3,125.00
Minor level: 3,085.95
Minor level: 3,007.85 **
Major level: 2,968.80 <
Minor level: 2,929.73
Minor level: 2,851.58
Major level: 2,812.50
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30
The S & P closed at 2,997.95. At this point, the S & P will need two closes above 3,007.85 to move up to 3,125. As I mentioned above, this should be resistance until it is cleared.
2,983 should be a support level. And 3,002.90 is a minor resistance level. If the S & P can clear this level, look for support at this price.
The 2,995 area should offer technical support.
QQQ:
Major level: 196.88
Minor level: 196.10
Minor level: 194.53
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
The QQQ closed at 193.55. The QQQ will need two closes above 194.53 to move up to 196.88.
192.19 should offer support. And the 192 area should also be technical support.
IWM:
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 <
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
The IWM closed at 153.34. With a close today above 151.56 today, the IWM should move up to 156.25.
151.56 should be a support level. And 152.34 should offer minor support.
Technical support is also around 152.
TLT:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
Minor level: 142.97
Minor level: 141.41
Major level: 140.63
Minor level: 139.85 **
Minor level: 138.28
Major level: 137.50
Minor level: 135.84
The TLT closed at 139.58. Watch to see if the TLT can hold the minor 139.85 level today. If it closes under this level today, I would expect a drop to 137.
The TLT is overosld in the short term. And I would not expect a drop under 139.06. If it does, the TLT should head lower.
The 139 area should offer technical support.
GLD:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
Minor level: 142.97
Minor level: 141.41
Major level: 140.63 <
Minor level: 139.85 **
Minor level: 138.28
Major level: 137.50
Minor level: 136.72
Minor level: 135.16
The GLD closed at 140.61. With the GLD reclaiming 139.85, it will still need two closes under 139.85 to move lower. To move higher, it will need two closes above 141.41.
Technical resistance should be in the 141 area. And the major 140.63 level should offer resistance. Biased to the downside. Support should be around 137.
XLE:
Minor level: 63.28
Major level: 62.50
Minor level: 61.72
Minor level: 60.16
Major level: 59.38 <
Minor level: 58.60
Minor level: 57.03 **
Major level: 56.25
Minor level: 55.86
Minor level: 55.08
Major level: 54.69
The XLE closed at 57.33. With a close above 57.03, I am biased for a move up to the 59 area.
But, the 59 area should be technical resistance. So, if the XLE can clear 59, it should head higher.
57.03 is a minor support level.
AAPL:
Major level: 237.50 <<
Minor level: 234.38 **
Minor level: 228.13
Major level: 225.00
Minor level: 221.88
Minor level: 215.63
Major level: 212.50
Minor level: 209.38
Minor level: 203.13
Major level: 200.00
Minor level: 196.88
Apple closed at 235.28. Apple closed back above the 234.38 level. This level should now be support.
Technical support is around the 234 level as well. This would be a good area to initiate a long.
Short term charts remain bullish.
WATCH LIST:
Bullish Stocks: AAPL, HD, EW, NVDA, RNG, DE, AGN, DG, CELG, NKE, VLO, SWKS, PAYX, TER
Bearish Stocks: VRTX, JAZZ, EOG, FANG, IRBT, RCI, OXY, YELP, CLR
Be sure to check earnings release dates.
