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.
MDT Pro Tips 5/20/20
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 $1.06
ET Long at $11.78
Premium Collected $0.35
ET Long at $7.50
Premium Collected $0.60
AGNC Long at $13.19
Premium Collected $1.45
MFA Long at $4.20
Premium Collected $0.40
HOG Long at $21.70
Premium Collected $0.90
Short May 22nd - $23 Call @ $0.45
OSTK Long at $17.64
Short May 22nd - $18 Call @ $.55
AMN Long July 17th - $45 Call @ $2.90
AMN Short July 17th - $50 Call @ $1.50
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Yesterday, I suggested you sell the $23 call on HOG that expires this Friday. This brings the premium collected on this position to $0.90 per share.
I also suggested two new positions yesterday. The first was a weekly covered call on OSTK.
This alert had you buying OSTK and selling the $18 call that expires this Friday. So, now we have two positions that expire in 3 days.
The final alert was on AMN. This was a longer-term position and uses the July monthly options. The July options allow the position some time to move in the money.
After the massive move to the upside on Monday, the market pulled back yesterday.
For the day, the S & P 500 closed 30.97 points to the downside. It closed the day at 2,922.94.
And the high for the day was 2,964.21, which was about 4 points below the high from Monday's daily bar.
Having said that, yesterday's low of 2,922.35 was 8.49 points above the low from Monday.
This means that yesterday's price bar formed an inside day. And the daily range was 41.86 points. This was 57% of the daily average true range, which is now 72.96 points.
This contraction suggests we will see an expansion.
Pre open, the S & P 500 is trading about 30 points higher. This would project to an open around 2,953.
This would be above the support area from yesterday's daily price bar, which is in the 2,936 to 2,943 area.
If the market does sell off after the open, look for support in this area.
A move higher would suggest a retest of the 2,974 to 2,968 area.
If the high from Monday is taken out, a rally to test the midband would be likely. That level is now 2,982.68. This is less than 15 points from Monday's high.
The week ends with NVDA, PANW, and SPLK reporting on Thursday.
Here are the Key Levels for the Markets:
$VIX:
Minor level: 39.84
Minor level: 38.28
Major level: 37.50
Minor level: 36.72
Minor level: 35.16
Major level: 34.38
Minor level: 33.60
Minor level: 32.03
Major level: 31.25 <
Minor level: 30.47 **
Minor level: 28.91
Major level: 28.13
Minor level: 27.35
Minor level: 25.78
Major level: 25.00
The VIX closed at 30.53. The VIX closed 1.23 points higher yesterday.
Yesterday's high went to 30.74, or just under the 31.25 level, which should be resistance.
Look for a break under 30.47 and resistance at this level today.
At this point, 31.25 should be resistance. And it is also technical resistance.
S & P 500:
Minor level: 3,007.85 **
Major level: 2,968.80 <
Minor level: 2,929.75 **
Minor level: 2,851.65
Major level: 2,812.50
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30
Minor level: 2,617.25
Minor level: 2,539.06
Major level: 2,500.00
The S & P closed at 2,922.94. The S & P closed just under the minor 2,929.75 level, but should open above it.
This would suggest that it would be support. Look for a test of 2,968.80, which is also just above Monday's high.
2,918 is technical support. And minor support is also at 2,952, which is around where the market should open.
QQQ:
Major level: 231.22
Minor level: 229.66
Minor level: 226.56 **
Major level: 225.00
Minor level: 223.42
Minor level: 220.31
Major level: 218.75
Minor level: 217.19
Minor level: 214.06
Major level: 212.50
Minor level: 210.93
Minor level: 207.81
Major level: 206.25
Minor level: 204.69
Minor level: 201.56
The QQQ closed at 226.86. The QQQ closed 0.57 points lower, but still managed to close above 226.56.
This now suggests that the QQQ should move up to 231.22.
The QQQ should open around 229. Watch for support at 227 to 228.
And technical support is around 228.
IWM:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
Minor level: 142.19
Minor level: 139.06
Major level: 137.50
Minor level: 135.94
Minor level: 132.81 **
Major level: 131.25 <
Minor level: 129.69
Minor level: 126.56
Major level: 125.00
Minor level: 123.44
Minor level: 120.31
Major level: 118.75
The IWM closed at 130.06. The IWM will need two closes above 132.81 to move up to 137.50.
131.25 should be support now. The IWM needs to regain 131.25 to move higher. And the IWM should open above it this morning. The minor 129.69 level should be support.
The 128 area should be technical support.
TLT:
Major level: 168.75
Minor level: 167.97 **
Minor level: 166.41
Major level: 165.63
Minor level: 164.85
Minor level: 163.28 **
Major level: 162.50 <
Minor level: 161.72
Minor level: 160.16
Major level: 159.38
Minor level: 158.60
Minor level: 157.03
Major level: 156.25
Minor level: 155.48
The TLT closed at 163.66. The TLT hit the 162.50 level. At this point, it will need two closes under 161.72 to drop to 158.
And to move higher, the TLT will need to close above 163.28.
The 165 area should be technical resistance.
GLD:
Major level: 165.63
Minor level: 164.85
Minor level: 163.28 **
Major level: 162.50 <
Minor level: 161.72
Minor level: 160.16
Major level: 159.38
Minor level: 158.60
Minor level: 157.03
Major level: 156.25
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
The GLD closed at 164.26. The GLD managed to close back above 163.28.
This now suggests that if the GLD can close above 163.28 today, it should head up to 165.63.
The minor 161.72 level should be support.
Technical resistance is around 162.
XLE:
Minor level: 47.65
Major level: 46.88
Minor level: 46.09
Minor level: 44.53
Major level: 43.75
Minor level: 42.97
Minor level: 41.41
Major level: 40.63 <
Minor level: 39.83
Minor level: 38.28 **
Major level: 37.50 <
Minor level: 36.72
Minor level: 35.15
Major level: 34.27
The XLE closed at 37.84. The XLE will still need two closes above 38.28 to move up.
The major 37.50 level should be support.
Technical support should be around 37. And resistance at the 42 level.
AAPL:
Major level: 325.00
Minor level: 321.88
Minor level: 315.63 **
Major level: 312.50 <
Minor level: 309.38
Minor level: 303.13
Major level: 300.00
Minor level: 296.88
Minor level: 290.63
Major level: 287.50
Minor level: 284.38
Minor level: 278.13
Major level: 275.00
Apple closed at 313.14. Watch the 315.63 level. Two closes above this level and Apple should move up to 325.
The major 312.50 level should be support.
The 311 area should now be support.
WATCH LIST:
Bullish Stocks: SHOP, REGN, NFLX, DPZ, HUM, NVDA, VRTX, RNG, LULU, WST, COUP, ZM, KLAC, SMG, BAND, MRNA, CHGG, AZN
Bearish Stocks: PSA, HSY, CAT, FDX, CB, AIZ, UPS, EXR, NTRS, ED
MDT Pro Tips 5/20/20
