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
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You should have been assigned on the $14.50 calls on FEYE and booked your profit. Profit of about 2.4% for about a week of holding the stock weer booked. With the VIX as low as it is, we have to settle for smaller returns on weekly covered calls. But it still works out to a higher return than what you can get in the bank for a year.
I hope you enjoyed your long Holiday weekend.
The week closed out with the S & P 500 closing at 2,476.55, up 33.50 points for the week. The high was the week was slightly higher, at 2,447.35.
This puts the market back to within 25 points of the objective we have been calling for. Which as you know, is 2,500.
With the last attempt at 2,500 failing at 2,490.87, this is a level to watch.
Based on the bullish price action from last week's weekly price bar, I would expect support in the 2,454 to 2,461 area.
On the daily chart, the S & P 500 formed a narrow range doji on Friday. The range for the day was only 6.53.
Considering the average true range (ATR) is 15.53, Friday's range was less than one half the ATR.
But with yesterday being a holiday, you would expect slow trading on the Friday before a long holiday weekend, with the New York traders heading out to the Hampton's early to start the weekend.
Having said that, the narrow trading after a series of bullish days seems to be the norm as of late.
The market makes sudden snapbacks, only to have a series of narrow range days that marks the end of the run.
Pre open, the S & P 500 is trading slightly to the downside. A violation of Friday's low would indicate continuation to the downside. Friday's low was 2,473.85.
The short term 30 minute chart for the S & P 500 has crossed into an uptrend. This indicates that short term momentum has shifted to the upside.
The midband on the 30 minute chart is 2,454, which should offer support. Notice as well that this price level lines up with the lower end of the weekly price bar support.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.84
Minor level: 13.28
Major level: 12.50
Minor level: 11.72
Minor level: 10.16 **
Major level: 9.38 <
The VIX closed at 10.13, just under the minor 10.16 level. 10.94 should be resistance.
And 12.50 should still be major resistance.
$SPX:
Major level: 2,500.00
Minor level: 2,484.38
Minor level: 2,453.12 ***
Major level: 2,437.50 <
Minor level: 2,421.88
Minor level: 2,390.62
Major level: 2,375.00
Minor level: 2,359.38
Minor level: 2,328.12
Major level: 2,312.50
The objective should still be to 2,500. 2,453.12 should be support.
And 2,468.80 should offer minor support.
2,476.60 is a minor resistance level to the upside. This is where the market reversed Friday. The market will need to clear it to head higher.
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. 150 should now be the objective.
144.53 should be support. Similar to the S & P 500, the short term 30 minute chart for the QQQ has moved into an uptrend.
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 140.52. The high for the day was 140.63, so you can say that our target of 140.63 was achieved.
Expect support at 137.50.
TLT:
Major level: 128.13
Minor level: 127.74 <
Minor level: 126.95
Major level: 126.56 <
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
Minor level: 124.61
Minor level: 123.83
The TLT closed at 126.75. A close today under 127.74 would indicate a drop to 126.56.
125 should offer strong support.
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: 120.32
Minor level: 119.53
Major level: 118.75
Minor level: 117.97
The GLD closed at 126.06. The GLD should test 128.
The 128.13 level should be difficult to get through on the first attempt.
Support is at 125.
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 63.58. A close today above 63.28 and the XLE should test 65.63. The XLE needs to close above 65.63 to head higher. A failure at that level and it should head lower.
63.28 is a minor support level. 64.45 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 87.19. To move lower, it needs two closes under 87.11.
87.35 is minor resistance and the FXY is just under it. Watch this level to determine the next minor move.
AAPL:
Major levels for Apple are 165.63, 162.50, 159.38, 156.25, 153.13, and 150.
Apple closed at 164.05, above the 162.50 level. The objective should be to 165.63.
163.28 should be minor support.
WATCH LIST:
Bullish Stocks: BIIB, HUM, ILMN, CI, WAT, RTN, LRCX, AAPL, VRTX, MCD, ASML, ADBE, BLUE, RCL, KMB, EA, CAT, ADSK, WDAY, RHT
Bearish Stocks: OMC, REG, PB, ALSK, BIG, APC, SAVE, EAT, GCO
Be sure to check earnings release dates.
