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
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Friday, the S & P 500 closed 12.13 points higher. The week closed out at 3,022.42.
The range for the day ended up being 25.45 points. This was almost the daily average true range, which is now 28.11 points.
And the day closed out at 80% of the daily price bar, which does suggest that Friday's high will be violated before the low.
The support area from Friday's daily bar should be in the 3,013 to 3,015 area.
For the week, the S & P closed 36.35 points higher.
The range for the week was only 36.18 points. With the weekly average true range of 77.05 points, the weekly range was less than 50% of the average.
And last week's range also contracted. This means that the weekly range has now contracted for two consecutive weeks.
We should see a range expansion. Perhaps we will get it this week.
The support area from last week's price bar is in the 3,010 area.
The 60 minute chart for the S & P is very close to crossing into an uptrend. In fact, the 200 ema and the 253 day average are now within 1 point of each other.
If the 60 minute chart can cross into an uptrend, it will suggest that the market will move higher.
Pre open the S & P is trading about 7 points higher.
Assuming this trading holds up until the open, it will suggest that the market will open above last week's high.
Support would then be at 3,027.39, which is last week's high and the close, which is 3,022.42.
Earnings continue this week. We get earnings from GOOGL this afternoon. And Apple on Wednesday after the close.
Facebook also reports this week. They report Wednesday after the close as well.
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 12.75 on Friday. This puts the VIX back to within 25 cents on the major 12.50 levels.
With the VIX back down to the long term 12.50 support level, it puts us on alert that a bounce could happen.
The minor 11.72 level is a key level on the downside. A break under this level and the VIX should head lower.
13.28 should be 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
With a close above 3,007.86, the objective should be up to 3,125.
The 3,007.86 level should be support. And technical support is around 3,004.
Momentum to the upside.
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 195.64. A close today above 194.53 would suggest a move up to 196.88.
194.53 should offer support. As well as 193.75.
Technical support is around 191.
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 155. The objective for the IWM should be for a move up to 156.25. Watch to see if the IWM can clear this level.
153.13 should still be a support level. And technical support is around 154.
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 138.52. Objective should be for a drop to 137.
140.63 should be resistance, as well as 139.06.
Technical resistance is around 141.
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 141.86. The objective should be for a test of 143.75.
141.41 should offer support on the downside. And this is right around the technical support level.
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 59.52. Watch to see if the XLE can hold the minor 58.60 level.
The XLE will need to clear 60.16 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 246.58. Apple is now within $5 of the 250 objective.
243.75 should offer support now.
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, ORLY, FLT, LRCS, AAPL, PANW, RH, CMI, UNP, KLAC, PSX, CELG, TIF,
Bearish Stocks: BA, LOGM, IRBT, RCI, CHL, CBS, NTGR
Be sure to check earnings release dates.
