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
Short Sept 15th - $15.50 call at $0.28
DIN Long December $40 call at $2.40
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The S & P 500 continued its assault on 2,500, closing at 2,496.49, within 3.50 points of the major objective. For the day, the market closed 8.37 points to the upside.
However, the range for the day was only 6.40 points. Compared with the average true range of 15.46 points, the range was the day was less than one half the ATR.
Once again, this similar pattern sets up. That is a large range move followed by narrow range trading.
And the bulk of this recent move was only caught if you were long before the weekend because of the bullish gap on Monday.
This is perhaps why I saw one of the pundits on TV say that this has to be the most hated bull market in history.
Seems like every week I write about how we have had a major move followed by narrow range trading. But, we have to deal with the cards we are dealt.
And as the markets continue to trade at historic levels, the VIX remains at historic lows.
Yesterday, it closed at 10.58, putting just 1.20 from the major 9.38 level.
How the VIX reacts at the 9.38 level should tell us if this market is running out of steam or if the bull move will continue.
But at the moment, we have the objective for the S & P 500 at 2,500 and if the market can clear this level, it should tell us it could go higher.
The shorter term 60 minute chart for the S & P 500 is close to crossing into an uptrend. If that can happen, I would expect more movement to the upside.
Pre open, the market should open slightly lower.
Continue to follow the resistance levels for
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: 8.60
Minor level: 7.03
Major level: 6.25
The VIX dropped .25 points and closed at 10.58. 9.38 should still be the objective.
10.94 is a minor resistance level. And 11.72 should also offer resistance is 10.94 is breached.
Minor support is at 10.16. And 7.81 should be short term support difficult to violate on the first attempt.
$SPX:
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
Minor level: 2,460.98
Minor level: 2,445.33
Major level: 2,437.50
Minor support should be at 2,492.20 and 2,484.40. Look for the VIX to reverse to the downside and the S & P to hold at support before entering long.
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 146.22. The objective should be up to 150.
Minor support is at 145.70 and 145.31.
IWM:
Minor level: 144.53
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: 135.15
Major level: 134.37
The IWM closed at 141.54. A close today above 141.41 implies the IWM should move up to 143.75.
Minor support is now at 140.63 and 139.84.
On the upside, 142.19 could offer resistance.
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
The TLT closed at 126.79. A close today under 127.35 and the TLT could drop to 125.
125 should be strong support. And 125.78 is minor support.
GLD:
Major level: 131.25
Minor 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: 124.22 **
Minor level: 122.66
Major level: 121.88
Minor level: 120.32
The GLD closed at 126.56. The objective should be to 125.
If the GLD breaks under 125, 123.44 should be support. If the GLD can move above 125.56, I would expect it to head higher.
XLE:
Minor level: 67.97
Minor level: 66.41
Major level: 65.63
Minor level: 64.85
Minor level: 63.28
Major level: 62.50 <<
Minor level: 61.72 **
Minor level: 60.16
Major level: 59.38
The XLE closed at 65.41. It is within 23 cents of the 65.63 objective.
65.63 is the key level to monitor. Depending upon how the XLE trades at this level, will tell us the next swing move.
64.85 is still minor support. 66.41 is 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 87.19. It broke under the major 87.50 support level. It is also just under the mid band on its daily chart, which is 87.21.
Two closes under 87.11 and the FXY should drop to 85.94. 85.94 should be major support.
87.50 should now be resistance.
AAPL:
Major levels for Apple are 165.63, 162.50, 159.38, 156.25, 153.13, and 150.
Apple closed at 160.86. A pullback to 159.39 would create a decent long set up.
Minor support should be at 159.38 and 160.16.
WATCH LIST:
Bullish Stocks: BIIB, BIDU, ILMN, WAT, ALGN, AET, ADBE, SAFM, ADSK, CHKP, PLCE, EL, HSY, DPS, CERN, SPLK, BAX, LVS
Bearish Stocks: TAP, ALK, PZZA, THS, DFS, QCOM, AMBA, SAVE, CNK
Be sure to check earnings release dates.