August 24, 2018 - MDT Pro Tips A.M.

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

SNAP Long at $14.54
Total Premium Collected - $1.65

BERY Long Sept $50.00 Call at $2.70

FEYE Long at $16.69
Total Premium Collected - $0.93

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Yesterday followed the action we have seen all week. Narrow range trading and the market closing slightly lower.

Yesterday's range was only 14.75 points, as compared to the daily average true range of 19.91.

Yesterday was the fourth consecutive day of contractions. Summer trading for sure.

For the day, the S & P 500 closed to the downside 4.84 points, at 2,856.98.

We still have objectives higher, so I am still biased for a move to the upside.

I don't when the market will move again, but there is no doubt that it will.

For the week, the S & P 500 has made very little headway. The week opened at 2,853.93 and closed yesterday at 2,856.98.

The midpoint of the weekly price bat at this point is 2,861.93. Watch this level today.

A close above the midpoint would be bullish. And of course, below it bearish.

The support level from yesterday's daily bar is in the 2,858 to 2,861 area.

Pre open, the S & P 500 is trading about 5.50 points higher. Continue to monitor the longer term levels for the market.

Here are the Key Levels for the Markets:

$VIX:

Major level: 25.00 Minor level: 23.44 Minor level: 20.31 Major level: 18.75 < Minor level: 17.19 Minor level: 14.06 ** Major level: 12.50 < Minor level: 10.94 Minor level: 7.81 Major level: 6.25

The VIX closed at 12.41. The VIX continues to trade under the 12.50 level.

At this point, I would expect a retest of 11.72. The question is will the VIX drop under it this time?

If it does, it closes for two days under it, the VIX could retest 9.38.

13.28 should be resistance. And watch to see if the VIX can take out 12.50.

SPX:

Major level: 2,890.60 < Minor level: 2,878.40 Minor level: 2,854.00 ** Major level: 2,841.80 < Minor level: 2,829.60 ** Minor level: 2,805.20 Major level: 2,793.00 Minor level: 2,780.78 Minor level: 2,756.33 Major level: 2,744.10

Target is still up to 2,890.60. Support should be at 2,849.10.

And also at 2,855.20. If this level holds, the market should move up to 2,873.50.

Short term intra day 30 and 60 minute charts are still bullish. Technical support is at 2,852.

QQQ:

Major level: 187.50 Minor level: 185.94 Minor level: 182.81 ** Major level: 181.25 < Minor level: 179.69 Minor level: 176.56 Major level: 175.00 Minor level: 173.44 Minor level: 170.31 Major level: 168.75

The QQQ closed at 180.80. To continue higher, the QQQ will need two closes above 182.81.

At this point, support should be at 179.69. If the QQQ can clear 181.25, I would expect a move up to 184.38.

180.47 is also a minro support level.

IWM:

Major level: 171.88 Minor level: 171.10 Minor level: 169.53 ** Major level: 168.75 < Minor level: 167.97 Minor level: 166.41 Major level: 165.63 Minor level: 164.85 Minor level: 163.28 Major level: 162.50

The IWM closed at 170.66. The IWM should move up to 171.88.

Minor support should be at the 170.31. 173.44 could offer resistance on the upside.

TLT:

Major level: 123.44 < Minor level: 121.49 Minor level: 120.70 ** Major level: 120.31 Minor level: 119.92 Minor level: 119.14 Major level: 118.75 Minor level: 118.36 Minor level: 117.58 Major level: 117.19

The TLT closed at 122.05. The TLT came within 11 cents of the 123.44 objective.

121.88 should be minor support and 122.27 minor resistance. If the TLT breaks though 122.27, it should head higher.

GLD:

Major level: 117.19 Minor level: 116.80 Minor level: 116.02 Major level: 115.63 Minor level: 114.85 Minor level: 113.28 ** Major level: 112.50 < Minor level: 111.72 Minor level: 110.16 Major level: 109.38

It closed at 112.20. The GLD hit a high of 112.88 before selling off. We were looking for resistance at 113.28.

112.50 should be resistance.

XLE:

Major level: 78.13 Minor level: 77.35 Minor level: 75.78 Major level: 75.00 Minor level: 74.22 Minor level: 72.66 ** Major level: 71.88 << Minor level: 71.10 Minor level: 69.53 Major level: 68.75

The XLE closed at 74. The XLE took out 75 and pulled back a bit.

Minor support should now be at 73.83 and at 73.44.

FXY:

Major level: 86.72 < Minor level: 86.53 Minor level: 86.14 ** Major level: 85.94 Minor level: 85.75 Minor level: 85.36 Major level: 85.16 Minor level: 84.97

The FXY closed at 85.96. The FXY dropped back to the 85.94 level.

85.74 should offer support. A break under this leve and the FXY continues to drop.

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

Apple closed at 215.49. Apple will still need two closes above 215.63 to move up to 225.

214.84 is minor support. Watch to see if Apple holds this level. If it can't, then a test of 212.50 is possible.

WATCH LIST:

Bullish Stocks: CMG, GWW, HUM, SPY, UNH, BDX, FDX, AAPL, CTAS, AMGN, CME, AAP, RH, WDAY, V, DXCM, SODA, UHS, VRSK, LLY, AXP

Bearish Stocks: AVGO, NTES, STZ, BABA, ALXN, ALNY, FMC, XEC, DY, SINA, CTRP, WGO, OSTK, TUP

Be sure to check earnings release dates.