August 6, 2019 - MDT Alert (EW)

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to the 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.

I suggested EW yesterday based on the fact that I was looking for a follow through to the downside.

After gapping to the upside, it is now back to above the upper band on the weekly chart.

I am going to suggest you close this position and take a small loss.

Here is how you close the position:

Sell to Close September $210 Put at $6.70

Buy to Close September $200 Put at $3.30

Based on these fills, the net loss is under $100.

We should get some great shorts in a few days.