February 11, 2020 - 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 $1.06

UNIT Long at $6.78
UNIT Short Feb 21st Call @ $0.30

KEX Long (2) Mar 20th - $75.00 calls @ $2.60
KEX Long (1) Mar 20th - $75.00 put @ $3.10

IRBT Long (2) Feb 28th - $52.50 calls @ $2.40
IRBT Long (1) Feb 28th - $52.50 put @ $2.50

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Yesterday, I did suggest another hedged straddle on a new position. The stock is IRBT and I suggested trading short dated options. The trade anticipates a bounce in the stock.

Next Monday, all markets will be closed for Presidents Day, so it will be a short week next week.

Yesterday, the market closed 24.38 points higher. The S & P 500 closed at 3,352.09.

The daily range was 34.49 and exceeded the daily average true range, which is 31.86.

And the day closed out at 100% of the daily price bar. This certainly suggests there will be follow-through to the upside.

I mentioned yesterday that I expected weakness early in the week followed by support to come in and a move higher.

Yesterday, the market did drop to take out Friday's low. The low yesterday was 3,317.77, and took out Friday's low of 3,322.12, by 4.35 points.

After stopping at the low, the S & P managed to rally and make a new high. The high was 3,352.26.

The weakness I mentioned did not last long. In fact, the low for the day was made right at the open.

Support from yesterday's daily price bar should be in the 3,335 area.

The S & P continues to tick up to the next level, which is 3,427.40.

The minor 3,398.35 level could offer support on the upside.

But, at this point, all timeframes remain bullish, so don't fight the tape.

Wednesday, we will get earnings from SHOP. And Thursday, we will hear from NVDA and EXPE. ROKU also reports Thursday after the close.

Here are the Key Levels for the Markets:

$VIX:

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
Minor level: 11.72
Minor level: 10.16
Major level: 9.38

The VIX closed Friday at 15.04. The VIX bounces slightly but still manage to close under the major 15.63 level.

The next key level on the downside is 14.85. Two closes under this level and the VIX should test 12.50 again.

16.41 should be resistance. The 14 area should offer technical support. And technical resistance is at 16, which is right at the minor level.

S & P 500:

Major level: 3,427.40 <
Minor level: 3,398.35
Minor level: 3,320.25 **
Major level: 3,281.20
Minor level: 3,242.15
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

The S & P closed at 3,352.09. This was the third close above the minor 3,320.25 level, which should be support.

Minor resistance is at 3,359. If the market clears this level, look for a move up to 3,398.

The 3,336 area should be technical support.

Short term trends remain bullish, so buying against support is still the best strategy.

QQQ:

Major level: 234.38
Minor level: 233.60
Minor level: 232.03 **
Major level: 231.25 <
Minor level: 230.48
Minor level: 228.91
Major level: 228.13
Minor level: 227.35
Minor level: 225.78
Major level: 225.00
Minor level: 224.22
Minor level: 222.69
Major level: 221.91

The QQQ closed at 231.97. The QQQ closed above the major 231.25 level. And closed just short of the next minor level, which is 232.03.

Two closes above 232.03 and the QQQ should test 234.38.

And the QQQ is firmly above the upper band on its daily chart. The upper band is 228.73. And this level should now be support until the QQQ closes under it.

230.48 should offer support.

Technical support is at 230. And the 234 area should be resistance.

IWM:

Major level: 175.00
Minor level: 173.44
Minor level: 170.31
Major level: 168.75 <
Minor level: 167.19
Minor level: 164.06 **
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

The IWM closed at 165.81. With a close above 164.06, the IWM should move up to 168.75.

The IWM moved above the midband on the 60 minute chart. The midband is 165.66. If the IWM can hold this level, it should continue higher.

Technical support should be at 166.

TLT:

Major level: 146.88
Minor level: 146.10
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: 135.84

The TLT closed at 144.83. The TLT had its first close above 144.53. And if it closes above this level today, the TLT should head up to 146.88.

By clearing 143.75, it should now be support.

The 144 area should offer technical support as well.

GLD:

Major level: 150.00
Minor level: 149.22
Minor level: 147.67 **
Major level: 146.89 <
Minor level: 146.11
Minor level: 144.54
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

The GLD closed at 148.17. The GLD should move up to 150, with the close above 147.67 yesterday.

The 148 area should be technical support. A break under it and the GLD should head lower.

Momentum is still to the upside.

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: 55.47
Minor level: 53.90 **
Major level: 53.12 <
Minor level: 52.34
Minor level: 50.78
Major level: 50.00

The XLE closed at 53.71. The XLE closed back under 53.90. If the XLE cannot clear 53.90, look for a drop to 50.

53.78 is a key support level. If this can hold, look for the XLE to continue to bounce. If it can't, look for a further drop.

Technical resistance should be around 54. The XLE will need to clear this level to head higher.

The XLE is oversold and I do expect a bounce.

AAPL:

Minor level: 334.38
Minor level: 328.13
Major level: 325.00 <
Minor level: 321.88 **
Minor level: 315.63
Major level: 312.50
Minor level: 309.38
Minor level: 303.13
Major level: 300.00
Minor level: 296.88
Minor level: 290.63
Major level: 287.50
Minor level: 284.38

Apple closed at 321.55. The key level in the short term is 321.88. If Apple clears this level, look for a move higher.

The upper band is 335 and is the level to watch on the upside.

The 320 area should offer technical support on a pullback.

WATCH LIST:

Bullish Stocks: TSLA, SHOP, LMT, ADBE, BIIB, MA, LRCX, COST, CTAS, VRTX, HD, LHX, RETA, SYK, ADSK, VRSK, CB, SPLK, UTX

Bearish Stocks: LEA, DLTR, PVH, XOM, GRA, LNG, OLLI, CLB, CARG,