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.
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GOGO Long at $19.93
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DVA Long November 15th - $57.70 call for $1.80
DVA Long November 15th - $55.00 put for $1.95
DVA Short November 15th - $60.00 call for $1.95
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The S & P 500 moved to the upside. For the day, the market closed 8.53 points higher. It closed out the day at 3,004.52, which was virtually the high for the day.
The low for the day came in at 2,991.21 and the range for the day was 13.57 points.
This was the eighth day the S & P has contracted. The daily average true range is now 29.28 points. This means that yesterday's range was less than 50% of the average.
All these consecutive contractions add up to the fact that a range expansion should come at some point.
And with the 60 minute chart for the S & P 500 very close to crossing into an uptrend, the likely scenario will be a move higher. This is especially true because the 30 minute chart remains bullish.
But, the main problem is that the S & P has not closed above the minor 3,007.85 level. As you know, this is the level we have been monitoring.
The closest a close came to the above this price was on Monday when the S & P closed at 3,006.72.
Watch this level today to see how the market reacts.
Support from yesterday's daily price bar is in the 2,998 to 2,999 area.
And the support area from last week's weekly price bar is still valid, which is in the 2,976 to 2,985 area.
CMG reported last night and is down about $17 pre open. BA reported and is trading about $4 to the upside.
TSLA reported last night and is trading almost 18% higher pre open. It is trading higher about $45.
Pre open, the S & P 500 is trading about 6 points higher.
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 14.02 yesterday. A break under 13.28 and the VIX should head lower.
14.26 is minor resistance. And watch the minor 13.67 level on the downside.
A move lower should indicate the S & P will move above the 3,007 level.
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
At this point, the S & P still needs two closes above 3,007.85 to move up to 3,125. As I mentioned above this should still be resistance until it is cleared.
It should be tested today. With a projected open above 3,007.85, watch for support at this level on a pullback.
The minor 2,995.60 level should offer support as well.
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 192.22. The minor 191.80 level should offer support.
And if the QQQ opens above 192.19, look for support at this level as well.
Technical support is around 190.
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 154.40. The objective for the IWM should be for a move up to 156.25. But, the IWM needs to clear 154.69 to move higher.
153.13 should be a support level. And technical support is 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 139.48. 139.85 should be resistance until it is violated.
139 should be support. And on the upside, 140.63 should be resistance until it is violated.
Technical resistance is around 142.
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 140.53. With the GLD reclaiming 139.85, it will still need two closes under 139.85 to move lower. The GLD will need to reclaim 140.63 to move higher.
137.50 should offer strong support.
Technical support is in the 139 area.
XLE:
Minor level: 63.28
Major level: 62.50
Minor level: 61.72
Minor level: 60.16
Major level: 59.38 < Hit
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 59.29. The XLE hit the 59.38 level, with a high of 59.41 again.
The XLE will need to clear 59.38 to head higher.
The XLE will need to clear this level to head higher. And 56.25 should still be support.
The XLE is actually close to crossing into an uptrend on its daily chart. This would be a major event and indicate higher prices to follow.
AAPL:
Major level: 250.00
Minor level: 246.88
Minor level: 240.63 **
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
Apple closed at 243.18. This was the first close above 240.63 and if Apple can close above this level, it should head up to 250. If Apple can clear 243.75, look for the move higher.
240.63 should offer support.
Technical support is around the 242 level.
Short term charts remain bullish. Buying against support is still the best strategy.
WATCH LIST:
Bullish Stocks: GOOGL, CHTR, SPY, CTAS, HD, AAPL, PANW, NVDA, FB, DE, AGN, CMI, DG, UTX, CAT
Bearish Stocks: BA, BIIB, FANG, XOM, CXO, TXRH, XEC, CLR, PSQ
Be sure to check earnings release dates.
