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
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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
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Yesterday, the S & P 500 closed 31.61 points higher. It closed the day out at 2,937.78.
The intra day range was only 16.98 points because of the 18-point bullish gap open.
This was a strong push higher and the first day that closed above the high of the bearish long-range candle from Friday, August 23rd.
That high was 2,927.01 and yesterday closed about 10 points above it.
As you know, that high was resistance and now that the market closed above it, it should be support.
Yesterday's high was about 3 points under last week's high, which was 2,940.43.
Pre open, the S & P is trading about 25 points higher.
This projects to an open at around 2,962 or about 22 points above last weeks high.
Last week's high should also offer support on a pullback.
And this push higher continues with the 60 minute chart still in a downtrend. As I mentioned yesterday, the S & P needs to clear the midband on the 60 minute chart to head higher.
And yesterday the market managed to do that. The midband on the 60 minute chart is 2,935 and the S & P closed about two points above it. This area should now be support.
And if the 60 minute chart can cross into an uptrend, it would signal higher prices to follow.
2,930 is the support area from yesterday's daily bar.
Palo Alto Networks reported last night and it's up about $15 off their earnings.
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 17.31 yesterday. This put the VIX under 17.97. A close today under 17.97 and the VIX should drop to 15.63.
A further drop would signify the market will continue higher.
18.75 and 17.97 should offer 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 2,937.78. At this point, the minor 2,929.73 level should be support.
Objective is still up to 2,968.80.
2,932 is also a minor support level.
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 188.33. This was the first close back above the major 187.50 level.
This level should now be support.
Two closes above 189.06 would suggest a move up to 193.75. And if the QQQ can clear 189.06, it should head higher.
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 147.84. Watch for support at 145.31. And if the IWM can clear 148.44, it should move up to 150.
146.88 should offer support on the downside.
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 147.43. The TLT is still above the upper band on the daily chart, which is 146.56.
147.66 is a minor level. If the TLT can clear this level, look for the move up to 150.
146.88 should offer support.
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 146.66. The objective for the GLD should be up to 150.
The GLD is above the upper band on the daily chart. The upper band is now 144.91.
146.88 is a minor resistance level on the upside. And if the GLD clears this level, look for the move up to 150.
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 58. The objective should be up to 59.38.
57.81 should offer support on the downside.
The short term 30 minute chart has turned bullish, indicating momentum is shifting to the upside.
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 209.19. 206.25 should still offer strong support. And minor support should be at 203.13.
The objective for Apple should still be to 212.50.
Ultimately, the target should be to 225.
The 30 minute chart is bullish and support should be around 205. And the 60 minute chart is close to crossing into an uptrend as well.
WATCH LIST:
Bullish Stocks: GOOGL, LMT, FLT, HD, CME, LRCX, AAPL, ADP, ROKU, KLAC, UPS, SBUX, AKAM, DNKN
Bearish Stocks: HUM, DPZ, BIIB, IRBT, BG, GOOS, GDOT, HLF, TDC, JNPR, CROX
Be sure to check earnings release dates.
