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
FEYE Long at $14.39
FEYE Short Sept 1st $14.50 Call at $0.23
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Yesterday saw the follow through from the reversal day on Tuesday. For the day, the S & P 500 closed 11.29 points to the upside, at 2,457.59.
This two day move brought the market back above 2,453.12, which now sets up a scenario whereby if the S & P 500 closes above that level today, the target is back to 2,500.
The market also managed to cross above the midband on the 30 minute chart. That level is 2,454, which is within one point of the resistance level, This tells us that this should be strong support.
Today also marks the last trading day of August. As it is shaping up on the monthly chart for the S & P 500, a doji bar is forming. The month of August opened at 2,477.10 and as of yesterday’s close, the S & P 500 is about 20 points under the open.
The interesting fact is that the midpoint of the August monthly bar is 2,454.11. This of course is the midband on the 30 minute chart. Does that level get tested this morning?
Perhaps it will, but holding at the level or breaking under it, should tell us the direction of the next minor move for the market.
As I write this, the S & P 500 is trading about 6 points to the upside, so it should open up around 2,463.
Should the market retest the 2,453 to 2,454 area, I would expect support to hold there.
Nest week is a short week, with the markets closed for the Labor Day Holiday.
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 close for the second day under 11.72, which means the objective should be back to 9.38.
Minor support is at 10.94. A break under that level paves the way for a move down to 9.38.
12.50 should still be 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
A close today above 2,453.12 set up the objective to 2,500 again,
2,453 should now be support. Minor resistance is at 2,460, so if the market opens above it, should become support.
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 144.65. A close today above 145.31 today would indicate that 150 should be the objective.
143.75 should be support.
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 138.37. A close today above 138.28 and the IWM should move up to 140.63.
137.50 should be strong support.
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 should test to 126.56, which should be support.
126.95 could offer short term support. On the upside, 128.91 should offer resistance.
GLD:
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 124.36. This is still above the minor 124.22 level. To move lower the GLD will need two closes under 124.22.
123.44 should be minor support. And 126.56 should offer resistance.
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 continues to try and hold the major 62.50 level. It closed just above it again, at 62.67.
To move lower, the XLE will need two closes under 61.72.
The minor 62.30 support level held yesterday. Watch this level today.
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 gappped down and closed at 87.14. It will need two closes under 87.11 to move down to 85.94.
87.40 is a short term resistance level. Watch how the FXY reacts around this level.
AAPL:
Major levels for Apple are 162.50, 159.38, 156.25, 153.13, and 150.
Apple closed at 163.35 A close today above 163.28 and Apple should test 165.63.
164.06 is a short term resistance level. Watch if Apple can clear this level. If it can’t, it should consolidate a bit before moving higher.
WATCH LIST:
Bullish Stocks: NOC, HUM, ANTM, LLL, RTN, BABA, AAPL, MCD, SBAC, ADBE, AMT, BLUE, CRM, CNC, SPLK, AABA, ATVI, WERN
Bearish Stocks: ULTA, GWW, FLT, AGU, VRSK, OMC, AKAM, CAKE, SAVE, OTEX, STX, BGS, OMI
Be sure to check earnings release dates.
