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
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DUST Long $4.50
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RRC Long at $11.85
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RRC Long at $9.20
RIG Long at $8.81
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FEYE Long at $17.18
Total Premium Collected $0.80
DVA Long November 15th - $57.70 call for $1.80
DVA Long November 15th - $55.00 put for $1.95
DVA Short November 15th - $60.00 call for $1.95
WDC Long October 25th - $58.50 put for $.95
WDC Short October 25th - $56.00 put for $.27
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The S & P 500 ended up closing 20.52 points higher for the day. It closed out yesterday at 3,006.72.
The range for the day was only 11.98 points, so once again the market contracted.
Especially when you consider that the daily average true range is 31.34. This means that yesterday's range was only 38% of the average.
Even though the market closed at 95% of the daily bar, it does not show a lot of bullish conviction. And quite frankly, it makes me suspicious that we may see some profit-taking.
Had the S & P 500 closed above 3,007.85 yesterday, I would certainly feel a bit different.
But, the S & P got to a high of 3,007.33 or 52 cents under the next minor level and could not clear it.
We had been expecting resistance at the minor 3,007.85 level until it is violated.
And pre open, the S & P is trading about 3 points higher. This does suggest an open around 3,010 or above the minor 3,007 level.
Watch the 3,007 level on a pullback.
And if the market does violate the minor 3,007 level, look for support around 3,001.
The 30 minute chart is bullish for the S & P, while the 60 minute chart is bearish. Though the 60 minute chart is close to crossing into an uptrend. If it can cross into an uptrend, the market should head higher.
The support area from last week's weekly price bar is in the 2,976 to 2,985 area.
Earnings will begin to heat up today.
This week we will get earnings from quite a few companies.
Today after the close, we will hear from CMG. And Wednesday before the close, we get earnings from BA and CAT.
After the close on Wednesday, we get earnings from, MSFT, PYPL, and TSLA.
And Thursday after the close, we get earnings from AMZN and DECK.
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 14.06 yesterday. It closed exactly on the minor 14.06 level.
Resistance should still be at 15.63. And watch the minor 14.06 level today. A break under it and it should be resistance.
Still biased for a drop to 12.50.
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 closed at 3,006.72. At this point, the S & P will need two closes above 3,007.85 to move up to 3,125. As I mentioned, above this should still be resistance until it is cleared. And it looks like the market should open just above it this morning.
Yesterday's low was 2,995.35, which was virtually on the minor 2,995.60 support level I mentioned yesterday.
2,998 should be minor support.
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 193.39. The QQQ will need two closes above 194.53 to move up to 196.88. And it will need to recoup the 192.19 level to head higher, which it did yesterday.
192.19 is a minor support level.
Technical support is at 192 as well.
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 154.04. The objective for the IWM should be for a move up to 156.25.
153.13 should be a support level. And 153.52 as well should offer minor support.
Technical support is also around 152.
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
Minor level: 135.84
The TLT closed at 138.53. The objective should still be to a drop to the 137 area.
The TLT broke under short term 139. This is a short term support level. At this point, it should now be resistance.
A close today under 138.67 would also help confirm a drop to 137.
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 139.79. With the GLD reclaiming 139.85, it will still need two closes under 139.85 to move lower. This would suggest if the gLD closes under 139.85 today, it should drop to 137.
At this point, the key price level is 140.63. If the GLD breaks under this level it should head lower. It will need to clear this level to head higher.
Technical resistance should be in the 141 area.
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 58.05. A close today above 57.03 and the XLE should test 59.
But, the 59 area should be technical resistance. So, if the XLE can clear 59, it should head higher.
The XLE is actually close to crossing into an uptrend on its daily chart. This would be a major event and indicate higher prices to follow.
AAPL:
Major level: 250.00
Minor level: 246.88
Minor level: 240.63 **
Major level: 237.50
Minor level: 234.38
Minor level: 228.13
Major level: 225.00
Minor level: 221.88
Minor level: 215.63
Major level: 212.50
Minor level: 209.38
Apple closed at 240.51. The next minor level on the upside is 240.63. Two closes above this level would suggest a move up to 250.
Technical support is around the 236 level as well.
Short term charts remain bullish. Buying against support is still the best strategy.
WATCH LIST:
Bullish Stocks: GOOGL, CHTR, SPY, CTAS, HD, AAPL, PANW, NVDA, FB, DE, AGN, CMI, DG, UTX, CAT
Bearish Stocks: BA, BIIB, FANG, XOM, CXO, TXRH, XEC, CLR, PSQ
Be sure to check earnings release dates.
