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.
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
DYN Long at $12.55
Premium Collected $0.48
APA Long Oct $47.50 Call at $3.45
SNAP Long at $15.20
PANW Long Oct $145 Call at $2.44
AMC Long at $15.27
AMC Short Oct $16 Call at $.43
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I suspect you can say we are in a market melt up. The S & P 500 struggled to clear the 2,500 level, and the next minor level, which was 2,509.78. Since clearing the 2,509 confirming line, the S & P 500 ran right up to the next level, which was 2,539.10.
And now yesterday, the S & P 500 closed at 2,552.07, which is above the next confirming line, which is 2,548.85.
This now implies that if the S & P closes above 2,548.85 today, the next objective becomes 2,578.10.
Even I am quite stunned by this move.
But, I cannot argue with the price levels I share. As long as they keep confirming to the upside, stay long. And most importantly, don't try and out smart the market and do something like shorting.
For those of you heeding that advice, which I have shared for sometime now, you no doubt have saved yourself some money.
As the S & P 500 defies history ... and gravity, so has the VIX.
I mentioned a little while back that I would not be surprised to see the VIX break under the major 9.38 level.
And yesterday it did.
Yesterday was the first ever close under 9.38, when the VIX closed at 9.19.
The next minor line for the VIX is 8.99. Two closes under 8.99 and the VIX should drop to 7.81.
We have one open position that expires today. That is the long $145 call on PANW. This trade suggestion was a post earnings gap trade. The set up comes with a high probability that the stock will rally again after the bullish earnings gap. But, quite frankly, the entry was a bit premature.
But when trading ling weekly options, we limit the risk to no more than 1% allocation.
I will look to close the position this morning and recoup what value remains.
Pre open, the market is trading about 3 points to the downside, but this is before the Non Farm Payroll Report. Watch for support in the 2,546 area.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
Major level: 15.63
Minor level: 14.85
Minor level: 13.28
Major level: 12.50
Minor level: 11.72
Minor level: 10.16
Major level: 9.38 <
Minor level: 8.99 **
Minor level: 8.20
Major level: 7.81
The VIX closed at 9.19. The low for the day was 9.13.
To move lower, the VIX will need two closes under 8.99.
Minor support should be at 8.59. And minor resistance is at 9.57.
$SPX:
Major level: 2,578.10
Minor level: 2,558.60
Minor level: 2,548.85 **
Major level: 2,539.10 <
Minor level: 2,529.33 **
Minor level: 2,509.78
Major level: 2,500.00
Minor level: 2,492.20
Minor level: 2,476.00
Major level: 2,468.80
A close above 2,548.85 and the objective becomes 2,578.
2,539.10 should now be support. And 2,544 should offer minor support. 2,558.60 could offer resistance on the first attempt.
QQQ:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31 ***
Major level: 143.75 <
Minor level: 142.18 ***
Minor level: 139.06
Major level: 137.50
Minor level: 135.94
Minor level: 132.81
The QQQ closed at 147.46. The objective is still to 150.
The minor support is at 146.88. Minor resistance is at 147.66.
IWM:
Minor level: 150.78 **
Major level: 150.00 <
Minor level: 149.22 **
Minor level: 147.66
Major level: 146.88
Minor level: 145.32
Minor level: 144.53
Major level: 143.75
Minor level: 142.97
The IWM closed at 150.26, just above the major 150 level.
151.56 could offer minor resistance and 149.22 is minor support.
TLT:
Major level: 131.25
Major level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.35
Minor level: 125.78
Major level: 125.00 <
Minor level: 124.61**
Minor level: 123.83
Major level: 123.44
The TLT closed at 123.94. The objective should be to 123.44.
123.63 is minor support and 124.22 is minor resistance.
GLD:
Major level: 128.13
Minor level: 127.35
Minor level: 125.78
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
Major level: 121.88
Minor level: 121.10 **
Minor level: 119.53
Major level: 118.75
The GLD closed at 120.52. The GLD should drop to 118.75.
Minor support is at 119.53. Minor resistance is at 121.09.
XLE:
Major level: 71.89
Minor level: 71.11
Minor level: 69.54
Major level: 68.75 **
Minor level: 67.97
Minor level: 66.41
Major level: 65.63
Minor level: 64.85
Minor level: 63.28
Major level: 62.50
The XLE closed at 68.65, only 10 cents under the 68.75 level. The high for the day was 68.76.
68.46 should be minor support. 68.95 could offer resistance.
FXY:
Major level: 89.06
Minor level: 88.67
Minor level: 87.89
Major level: 87.50
Minor level: 87.11
Minor level: 86.33
Major level: 85.94 <
Minor level: 85.55 ***
Minor level: 84.77
Major level: 84.38 <
The FXY closed at 85.13, once again under the 85.55 support level. The objective should still be down to 84.38.
85.35 should offer minor resistance. 84.96 is minor support.
AAPL:
Major levels for Apple are 165.63, 162.50, 159.38, 156.25, 153.13, and 150.
Apple closed at 155.39, closing up for the day $1.91. Apple is approaching the midband on its 30 minute chart. That level is 155.89. If it can clear this level, it should continue higher.
156.25 should also be a resistance level and it is close to the 155.89 price level. Watch this area. Apple will have to clear this level to continue higher.
WATCH LIST:
Bullish Stocks: GOOGL, LMT, BIDU, FDX, DPZ, RTN, LRCX, CELG, PX, ALB, CME, DE, CAT, UTX, RHT, ADP, KSU, KLAC
Bearish Stocks: WBA, TAP, WBA, DXCM, HA, TECK
Be sure to check earnings release dates
