October 2, 2017 - 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

DYN Long at $12.55
Premium Collected $0.48

APA Long Oct $47.50 Call at $3.45

SNAP Long at $15.20

PANW Long Oct $145 Call at $2.44

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Friday closed out the third quarter of 2017 with another gain for the month. The month closed out at 2,519.36.

With a monthly open at 2,474.42, the month had another bullish close. And it closed again above the upper band on its monthly chart. the upper band is now 2,419.11, so the S & P 500 is trading about 100 points above that level.

For the week, the S & P 500 closed to the upside 17.14 points. The range for the week was 31.41 points, about 4 points below the average true range, which is 34.91.

Based on the bullish weekly bar, support should be in the 2,503 to 2,509 area.

Friday was also the second consecutive close above 2,509.78. This now implies a move up to 2,539.10.

Support from Friday's daily price is in the 2,513 to 2,515 area.

I also mentioned the 2,519 price level on Friday and the S & P 500 closed just above it. If the S & P can close above 2,519, I would expect a move even higher than 2,539.10.

Friday at 8:30 AM EST we will get the non farm payroll.

Pre open, the market is trading to the upside about 4.50 points, so watch the support areas I mentioned above.

Continue to follow the resistance levels.

Here are the Key Levels for the Markets:

$VIX:

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 <
Minor level: 8.60
Minor level: 7.03
Major level: 6.25

The VIX closed at 9.51. The low for the day was 9.36, so the target of 9.38 we have been looking for has been achieved.

As you know, the 9.38 level has been major support for the VIX.

At this point, it is quite possible that the VIX takes out the major 9.38 level. I would expect resistance at 10.94.

Minor support should be at 8.98.

$SPX:

Major level: 2,539.10
Minor level: 2,529.33
Minor level: 2,509.78 **
Major level: 2,500.00
Minor level: 2,492.20 **
Minor level: 2,476.00
Major level: 2,468.80
Minor level: 2,460.98
Minor level: 2,445.33
Major level: 2,437.50

The objective should now be up to 2,539. Minor support should be at 2,514.60 and 2,509.80.

Minor resistance is at 2,529.30.

QQQ:

Major level: 150.00
Minor level: 148.44
Minor level: 145.31 ***
Major level: 143.75 <
Minor level: 142.18 ***
Minor level: 139.06
Major level: 137.50
Minor level: 135.94
Minor level: 132.81

The QQQ closed at 145.45. A close today above 145.31 implies a move up to 150.

And 144.12 should also offer support. Minor resistance is at 145.70.

IWM:

Major level: 150.00 <
Minor level: 149.22
Minor level: 147.66 **
Major level: 146.88
Minor level: 145.32
Minor level: 144.53
Major level: 143.75
Minor level: 142.97
Minor level: 141.41
Major level: 140.63

The IWM closed at 148.18, closing above 147.66 for the second time. The objective should be to 150.

146.88 is still minor support and 148.44 is minor resistance.

TLT:

Major level: 131.25
Major level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.35
Minor level: 125.78
Major level: 125.00 <
Minor level: 124.61**

The TLT closed at 124.76. To move higher, the TLT will need to close above 125, which should be resistance.

123.83 is minor support and 125.39 is minor resistance.

GLD:

Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.35
Minor level: 125.78
Major level: 125.00 <
Minor level: 124.22 **
Minor level: 122.66
Major level: 121.88 <
Minor level: 120.32

The GLD closed at 121.58, closing under the major 121.88 level.

Minor support is at 120.32. Minor resistance is at 122.66.

XLE:

Major level: 71.89
Minor level: 71.11
Minor level: 69.54
Major level: 68.76 **
Minor level: 67.97
Minor level: 66.41
Major level: 65.63
Minor level: 64.85
Minor level: 63.28
Major level: 62.50

The XLE closed at 68.48. The XLE will need to clear 68.76 to move higher.
68.95 is minor resistance. And 68.26 is minor support.

FXY:

Major level: 89.06
Minor level: 88.67
Minor level: 87.89
Major level: 87.50
Minor level: 87.11
Minor level: 86.33 **
Major level: 85.94 <
Minor level: 85.55 ***
Minor level: 84.77
Major level: 84.38 <

The FXY closed at 85.37, under the 85.55 support level. The objective should be down to 84.38.

85.94 and 87.50 should still be strong resistance.

Minor resistance is at 85.55 and minor support at 85.16.

AAPL:

Major levels for Apple are 165.63, 162.50, 159.38, 156.25, 153.13, and 150.

Apple should retest 156.25. 151.56 should be support. And the 153 area should also be support.

Short term intra day charts are bearish, so resistance is at the 157 to 159 area.

WATCH LIST:

Bullish Stocks: GOOGL, LMT, BIDU, FDX, DPZ, RTN, LRCX, CELG, PX, ALB, CME, DE, CAT, UTX, RHT, ADP, KSU, KLAC

Bearish Stocks: WBA, TAP, WBA, DXCM, HA, TECK

Be sure to check earnings release dates.