October 2, 2019 - MDT Pro Tips A.M.

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
Total Premium Collected $0.70

RRC Long at $9.20

RIG Long at $8.81
Premium Collected - $1.45

FEYE Long at $17.18
Total Premium Collected $0.80
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The fourth quarter began with a bearish long range candle. The quarter started with a 36.49 point sell-off.

For the day, the S & P closed at 2,940.25. And the daily range was 53.83 points. The range was 168% of the daily average true range. The daily average is 32.13 points.

I continue to mention the average daily and weekly true ranges because once again, a contraction was followed by an expansion.

With the bearish long range candle, we expect strong resistance at the midpoint, which is 2,965.

And the daily bar closed out at 3% of the daily bar. This tells us that the odds of taking out the low of 2,938.70, before the high of 2,992.53 is almost 100%.

And pre open, the S & P is trading about 15 points lower. Assuming this trading holds up into the open, the market would open about 13 points below yesterday's low.

So, the close percentage projection should be hit right off the open.

And yesterday closed under the low of last week's weekly price bar. The low was 2,945.63 and yesterday's close was 2,940.25. The close was about 6 points under the weekly low.

And the weekly range from Monday through Tuesday so far is 54 points. The weekly average true range is 75 points. A drop of 21 points would put the weekly range right at the average.

A move to the projected weekly average true range would project to 2,918.

Yesterday's price dropped to the midband on the 60 minute chart. The midband is 2,945.

Ths level should now be resistance. And the market would have to reclaim this level to head higher.

Assuming this level cannot hold, a drop to the lower band, which s 2,817 would not be out of the question.

2,817 also just happens to be the midband on the daily chart.

So, watch this level in the short term.

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 18.41 yesterday. The low for the day was 15.79, which was above the 15.63 level we were looking to be tested.

And the high for the day was 13 cents under the major 18.75 level.

Assuming the VIX clears 18.75, it should continue higher. Minor resistance should be at 20.31.

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 2,940.25. The major 2,968.80 should be resistance.

And at this point, watch to see how the S & P reacts at the 2,929.73 level. The open should be right around this level.

A break under this and the market should continue lower.

2,905 should offer 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 187.27. The QQQ will need two closes above 189.06 to move up to 193.75.

The 188 area should offer resistance. And watch the minor 185.94 level. This is the key level on the downside. A break under this and the QQQ should head lower.

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 148.37. The IWM broke hard under the midband, which is 150.40. This should now be resistance.

And a close today under 148.44 and the IWM should drop to 143.

150 should now be resistance.

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 143.26. The TLT did retest 143.75 as expected.

The high for the day was 143.91.

Watch to see if the TLT can clear the 143.75 level. If it can, it should continue higher.

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 139.63. The GLD will need to clear 139.85 to head higher.

140.63 should still be resistance. The GLD is oversold and support should be at 137.50. Looking for a bounce here.

XLE:

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 <<
Minor level: 58.60
Minor level: 57.03
Major level: 56.25

The XLE closed at 57.83. A close today under 58.60 and the XLE should drop to 56.

On the downside, support should be at 57.81. And yesterday's low was 57.83. Look for resistance at 58.59 and for the XLE to continue lower.

The 60 area should offer technical resistance.

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 224.59. Apple took out the 225 objective by 3.22 before selling off.

218.75 should now be support.

Apple is overbought in the short term and a pullback would not be out of the question.

WATCH LIST:

Bullish Stocks: MLM, AAPL, NSC, RH, RH, AGN, KLAC, ITW, IBM, UTX, KSU, PG, PSX, NXPI

Bearish Stocks: NFLX, REGN, HUM, UNH, VRTX, MOH, BMRN, GRUB, GDOT, ALKS

Be sure to check earnings release dates.