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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The S & P 500 moved up to new highs. The day closed out at 3,039.42. For the day, the S & P was up 16.87 points.
And the intraday range was only 11.96 points. This was mainly due to the fact that the market gapped up 9.57 points at the open. If you measure the high to Friday's high, the range would be 17 points.
This is still below the daily average true range, which is 27.64 points.
I generally do not like bullish gaps after a stock or market has made a bull run. This can often be a sign of exhaustion. And when you consider that the VIX is at all-time lows and reversed, this makes me even more concerned.
But, the 60 minute chart did cross into an uptrend yesterday.
As you know, this is the technical condition we have been waiting for. This should indicate that higher prices will follow.
This also suggests that a pullback should be short-lived.
Support from yesterday's daily price bar should be in the 3,035 to 3,038 area.
Pre open the S & P is trading about 3 points lower. This suggests an open right in the middle of the support area.
Yesterday, SPOT reported and jumped 16% off their report.
GOOGL reported last night and is off about $14. Beyond Meat (BYND) reported and is trading $20 lower.
But, big mover today is Grub Hub. GRUB is down about $19 or 32% pre open.
In addition to all the earnings reports this week, the Fed has its meeting tomorrow at 2:00 PM EST on interest rates.
So, there are a lot of market-moving news coming out this week.
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 out at 13.11 yesterday. The VIX moved up 0.46 yesterday.
With the VIX down at the long term 12.50 support level, a bounce here is not unexpected.
But, at this point, 13.28 should still be resistance. If the VIX takes it out, it should run to 13.67.
Short term, the VIX is oversold. But, the short term charts are bearish, so any rally should be short lived.
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 objective for the S & P should be up to 3,125.
The 3,007.86 level should be a support level now. On the upside, minor resistance should be at 3,051.80.
3,012 should offer technical support.
QQQ:
Major level: 200.00
Minor level: 199.22
Minor level: 197.77 **
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
The QQQ closed at 197.57. The QQQ took out the 196.88 objective.
The next minor level on the upside is 197.77. Two closes above this level and the objective should be to 200.
The QQQ is overbought in the short term, but like the S & P, any pullback should be short-lived.
The 196 area should offer support.
IWM:
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25 Hit!
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 156.34. The IWM hit the 156.25 objective. Watch to see if the IWM can clear this level.
154.69 should still be a support level. And technical support is around 154.
TLT:
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 **
Minor level: 132.81
Major level: 131.25
The TLT closed at 137.26. The TLT hit the 137.50 objective we were looking for.
The next level to watch should be 135.84. Two closes under this level and the TLT should test 131.
136.72 is a support level. And 137.89 is resistance.
Technical resistance is around 139.
GLD:
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
Major level: 134.38
The GLD closed at 140.64. This is one cent above the major 140.63 level. A break under this level and the GLD should drop to 137.
137.50 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 59.18. The XLE will have to clear 59.38 to head higher.
The XLE is overbought in the short term. A pullback to the 58.20 area should be expected.
Technical support is around 58 as well.
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 249.25. Apple is now within 75 cents of the 250 objective.
Apple is now overbought in the short term and is sitting right at the upper band on its daily chart. This level is 251.40.
243.75 should offer support now.
Technical support is around the 243 level.
Short term charts remain bullish. Buying against support is still the best strategy. But, Apple is overbought.
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.