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
XLNX Long September 20th - $110 call for $4.80
XLNX Short September 20th - $115 call for $2.70
FL Long Sept 13th -35.50 Put @ $0.90
FL Short Sept -13th - $33 Put for $0.30
MA Long Sept 20th - $272.50 Call for $5.30
MA Short September 20th - $277.50 Call for $3.05
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This is always a somber day for my family. We knew people who died in the 9/11 attacks and people who died after the attacks, after helping with the cleanup.
In fact, we live so close to the Towers that you could literally smell the burning up to 30 days after that dreadful day.
My thoughts and prayers go out to the families affected by this tragedy.
Now back to the markets.
I did suggest a short term debit spread on MA yesterday. The expiration is next Friday, so we have a short time to see if MA can move higher. Again, I remind you that you should not overtrade these positions.
The S & P 500 closed 0.96 points higher. It closed out the day at 2,979.39.
The market got as low as 2,957.01 before rallying about 22 points into the close.
This was below the support area from Monday's daily bar, but above the weekly support area.
The weekly support area is in the 2,939 to 2,944 area.
The daily support level from yesterday's daily bar is in the 2,968 to 2,975 area.
Pre open, the S & P is trading about 2 points higher. Yesterday's close of 2,979.39 should also offer support.
I mentioned yesterday how I felt the IWM would continue higher based on the fact that it crossed into an uptrend on its daily chart.
Two days ago, it rallied to around the midband and I stated yesterday that it needs to clear the midband to head higher.
And yesterday, it did just that.
It had a strong move of 1.94 points and closed above the midband, which is now 151.79.
This level should now act as support. Watch to see it if holds,
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 15.24 yesterday. It closed slightly lower on the day.
But, it is still under the major 15.63 level.
The next level lower is 14.85. Two closes under this level and the VIX should be back to testing the major 12.50 level.
14.06 is a minor support level. If the VIX breaks under it, it should head lower. 16.41 should continue to be minor 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
The S & P 500 closed at 2,979.39. The major 2,958.80 level should offer support.
3,007.85 should be the next level to watch on the upside. Two closes above this level and the S & P should move up to 3,125.
2,954 should also offer support. And the 2,950 area should offer technical support.
If the S & P can clear 2,978.50, it should move up to 3,002.90.
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 190.64. 193.75 should be the objective.
189.06 should continue to offer short term support. And yesterday's low came to just under it.
A break above 190.63 and the QQQ should run up to 192.
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 153.85. The objective for the IWM should be up to the 156.25 level.
153.13 should offer support. And of course, the midband should also offer support.
150 should now offer strong support.
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
The TLT closed at 140.69. Yesterday's low went to 140.66, just 3 cents above the objective.
With a break under 140.63, look for the TLT to head lower.
Minor support could come in at 139.85. And 142.19 should offer minor resistance.
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 140.18. The GLD closed under the major 140.63 level.
140.63 should now be resistance.
139.06 is minor support. And 137.50 should be strong support.
XLE:
Minor level: 63.28
Major level: 62.50 <
Minor level: 61.72
Minor level: 60.16 **
Major level: 59.38
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 60.92. The objective for the XLE should be up to 62.50.
60.16 should offer minor support. If the XLE can clear 60.94, it should move up to 61.72.
59.38 should offer support on the downside.
The short term 30 minute chart has turned bullish, indicating momentum is shifting to the upside. And the 60 minute chart continues to move closer to an uptrend.
AAPL:
Major level: 225.00
Minor level: 221.88
Minor level: 215.63 **
Major level: 212.50 <
Minor level: 209.38 **
Minor level: 203.13
Major level: 200.00
Minor level: 196.88
Minor level: 190.63
Major level: 187.50
Minor level: 184.38
Apple closed at 216.70. A close today above 215.63 and Apple should continue up to 225.
212.50 should offer minor support. And now that Apple has cleared 215.63, it should be support as well.
With both the 30 & 60 Minute charts in uptrends, continue to buy oversold conditions.
WATCH LIST:
Bullish Stocks: LMT, COST, FLT, MA, NTES, BDX, MLM, HD, LRCX, CME, AAPL, BABA, GPN, CB, KLAC, VMC, DLR
Bearish Stocks: HUM, NFLX, JAZZ, ALXN, FANG, CNC, MDP, YELP, ALKS
Be sure to check earnings release dates.
