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 $.75
DUST Long $4.50
Total Premium Collected? $.70
FCX Long $12.45
Total Premium Collected? $.24
CIEN Long Oct 21-$22 Call? $1.39
Total Premiums Collected? $.74
KR Long Jan $30 Call? $1.30
KR Short Jab $33.75 Call? (.25)
DYN Long at $12.55
DYN Short Oct $12.50 Call (.48)
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The S & P 500 formed a doji bar on the daily chart.? This is when the open is close to the close.? The open was 2,142.51 and the close was 2,141.34.
You no doubt recognize that this is very close to the minor 2,140.62 level.? As I mentioned yesterday, that was the level to watch and the market basically traded above and below it all day.
Also, the 2,152 to 2,155 area should still be resistance as the market did not test it. However, yesterday?s high was 2,147.18, which was just under the 2,148.44 resistance level I suggested yesterday.
A doji bar means indecision.? Or it can mean a pause.
Pre open, the markets are set to open slightly to the downside.? Watch to see if yesterday?s low is violated.
Also, with a close yesterday above 2,140.62, the S & P 500 should retest the major 2,187.50 level.
Earnings reports are producing the typical volatility.? EBAY was down 10.76% off their earnings yesterday and AXP jumped 9.03%.?
We do have two open positions that expire today.? The first is the short $12.50 call on DYN.? DYN closed at $12.90 yesterday or 40 cents above the strike.? So, if it stays above $12.50, the calls will be assigned.
The other position is the long calls on CIEN.? I felt we bought enough time when I suggested the position, but that is not the case.? Because we have traded against the long call position, the loss has been mitigated.
You will receive an email later today if any adjustments need to be made.? If DYN is trading above the strike, I will not send a separate email.
Continue to monitor the levels for entry points.
Here are the Key Levels for the Markets:
$VIX:
Major level - 18.75
Minor level - 17.96
Minor level - 16.41 *
Major level - 15.63 *
Minor level - 14.85
Minor level - 13.28
Major level - 12.50
Minor level - 11.72
The VIX closed at 13.75 yesterday. ?The objective should be to 12.50.? The VIX broke under the mid band on the 30 & 60 minute charts.
Watch for a retest of those levels, which are 14.27 to 14.40 area.
14.85 should offer resistance.? 15.23 could also offer minor resistance.
The 14.06 level should be important today. ?
$SPX:
Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12
Major level - 2,187.50
Minor level - 2,171.88
Minor level - 2,140.62 *
Major level - 2,125.00 *
Minor level - 2,109.38
Minor level - 2,078.12
Major level - 2,062.50
The 2,153 to 2,156 area should offer resistance.
2,140.62 should be a key level to watch.? 2,148.44 should continue to be a minor resistance level.? Support should be at 2,132.80 and 2,136.70.
QQQ:?
Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75 *
Minor level - 117.97 *
Minor level - 116.41 *
Major level - 115.63 *
Minor level - 114.84
Minor level - 113.28
Major level - 112.50
117.58 should still offer support.? If it holds that level, look for a move higher.? Minor resistance is at 118.07.
If the QQQ can clear 118.75, it should move higher.
TLT:?
Major level - 137.50
Minor level - 136.72
Minor level - 135.16
Major level - 134.38
Minor level - 133.60
Minor level - 132.03 *
Major level - 131.25
Minor level ? 130.46
Minor level ? 128.91
Major level ? 128.13
Objective is still back to a retest of 134.38.? The TLT closed at 133.11.
132.03 should offer support.? Minor resistance should be at 133.60.
GLD:
Minor level - 124.22
Minor level ? 122.66
Major level ? 121.88
Minor level ? 121.10
Minor level ? 119.53 *
Major level ? 118.75
Minor level ? 117.97
I mentioned the objective of 121.88 yesterday, and to see if the GLD reverses there.? The GLD hit a high of 121.59 before closing at 120.74.
121.09 should offer minor resistance.? And 119.53 should offer support.
XLE:
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 *
Minor level - 67.96
Minor level - 66.41
Major level - 65.63
The XLE closed down slightly yesterday.? It c
losed at 70.65. Minor support should be 70.31.? I would not expect the XLE to drop down further than 69.92.
Objective should still be to 71.88.
FXY:
Major level: 96.88
Minor level: 96.49
Minor level: 95.70
Major level: 95.31
Minor level: 94.92
Minor level: 94.14
Major level: 93.75 *
Minor level: 93.36
Minor level: 92.58 *
Major level: 92.19
Minor level: 91.80
Minor level: 91.02
Major level: 90.63
Since coming to within 19 cents of the 93.75 objective, the FXY pulled back.? 92.58 should be a minor support level.? If that does not hold, it should retest 92.19
Support should be at 92.19 and 92.58.
AAPL:
Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.
Apple has consolidated for the last week.? Support should still be around 112.50 to 115 area.? Buying against support still makes sense, but wait for a pullback.
WATCH LIST:
Bullish Stocks: NTES, ACN, AAPL, FANG, KS, ROST, MENT, DRI
Bearish Stocks:? REGN, AGN, BIDU, CLX, ANTM, CELG, DIS, VRTX, GILD, ESRX
Be sure to check earnings release dates.
