June 4, 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
Premium Collected - $1.65

BERY Long Sept $50.00 Call at $2.70
BERY Long Sept $47.50 Put at $1.50

APA Long July $40.00 call @ $2.10
APA Long July $40.00 put @ $1.90

SYMC Long at $20.99
SYMC Short June 8th- $21 call at $1.40

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Friday, you should have added a weekly covered call on SYMC. The calls sold against this position expire this coming Friday.

The S & P 500 gapped to the upside 13.43 points on Friday, which happened to be the low of the day. The open and low was 2,718.70.

From the open, the market rallied all day to close at 2,734.62. This was just above the major 2,734.40 support level.

Basically, since Tuesday, the S & P 500 rallied from the minor 2,675.83 to the major 2,734.40 level.

The next level to the upside is 2,753.93. If the S & P can close above this level for two days, the objective should be to 2,812.50.

Support from Friday's daily price bar is in the 2,727 area.

For the week, the S & P 500 closed 13.29 points to the upside. The range for the week was 60.12 points, which was less than the average. The weekly average true range is 72.1 points, so the range contracted about 12 points. This is not too unusual given the fact that there was a short week.

Support from last week's price bar is in the 2,720 area. And 2,735 should also offer support.

2,710 should be a support level from the May monthly price bar.

The only negative for the market is that the VIX is almost back down to its longer 12.50 level. That and the fact that both the S & P 500 and the VIX closed to the upside last week. This is a divergence and usually warns us to a change in direction, even if temporarily.

Pre open, the S & P 500 is trading about 8 points higher.

This projects to an open around 2,742.

Continue to monitor the longer term levels for the market.

Here are the Key Levels for the Markets:

$VIX:

Major level: 31.25
Minor level: 29.69
Minor level: 26.56
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

The VIX closed at 13.50 yesterday. The is within 1 point of the 12.50 objective we have been looking for.

The VIX did break under the 14.84 level on Friday. The high for the day was just above it. Resistance should be at 14.06 and 14.84.

$SPX:

Major level: 2,812.50
Minor level: 2,792.98
Minor level: 2,753.93
Major level: 2,734.40 <
Minor level: 2,714.88 **
Minor level: 2,675.83
Major level: 2,656.30
Minor level: 2,636.75
Minor level: 2,597.65
Major level: 2,578.10
Minor level: 2,558.58

2,744.10 is a minor resistance level. The market should open about 2 points under this level. If the market can clear 2,744.10, look for it to continue higher.

Short term momentum is bullish. Continue to buy against support.

QQQ:

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
Minor level: 167.19
Minor level: 164.06
Major level: 162.50

Objective should be to 175. And the QQQ needs to clear this level to head higher.

170.31 should offer support.

Like the S & P 500, the 30 minute and 60 minute charts remain bullish. Still stronger than the S & P 500 index. Continue to buy against support.

IWM:

Major level: 165.63
Minor level: 164.85
Minor level: 163.28 **
Major level: 162.50 <
Minor level: 161.72
Minor level: 160.16
Major level: 159.38
Minor level: 158.60
Minor level: 157.03
Major level: 156.25
Minor level: 155.47

The IWM surged to close at 163.84. A close today above 163.28 and the objective should be to 165.63.
162.50 should offer strong support. And 163.28 is a short term support level.

TLT:

Major level: 125.00
Minor level: 124.61
Minor level: 123.83
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

The TLT closed at 120.30. The TLT hit the 120.31 objective.

I would expect a retest of the 118.75 level. And a possible reversal there.

121.09 is a minor resistance level.

GLD:

Major level: 128.13
Minor level: 127.35
Minor level: 125.78
Major level: 125.00
Minor level: 124.61
Minor level: 123.83 **
Major level: 123.44 <
Minor level: 123.05
Minor level: 122.27
Major level: 121.88
Minor level: 121.49
Minor level: 120.70
Major level: 120.31

The GLD closed 122.49, closing just under the major 123.44 level again. 125 should offer strong resistance on the upside.

The GLD closed under the midband. The midband is 123.04. This level should now be resistance.

A break under 122.27 and look for the GLD to continue lower.

XLE:

Major level: 81.25 <<<
Minor level: 80.47
Minor level: 78.91
Major level: 78.13 <
Minor level: 77.35
Minor level: 75.78 **
Major level: 75.00
Minor level: 74.22
Minor level: 72.66

The XLE closed at 76.38 on Friday. Target is still up to 78.13.

The 75 area is a strong support level. Biased for a move higher.

FXY:

Major level: 89.06
Minor level: 88.87
Minor level: 88.48
Major level: 88.28
Minor level: 88.09
Minor level: 87.70
Major level: 87.50 <
Minor level: 87.31
Minor level: 86.92
Major level: 86.72
Minor level: 86.53

The FXY closed at 87.37. The FXY did drop to 87.50 as expected.

87.50 should now be resistance. A break under 87.11 and look for the FXY to drop to 85.94.

AAPL:

Major level: 190.63
Minor level: 189.85
Minor level: 188.28 **
Major level: 187.50
Minor level: 186.72
Minor level: 185.16
Major level: 184.38

Apple closed at 190.24. Friday's low was 187.75, 25 cents above the major 187.50

The major level after 190.63 is 193.75.

Both short term charts, the 30 & 60 minute remain bullish.

WATCH LIST:

Bullish Stocks: AMZN, GOOGL, NFLX, FDX, ALGN, ADBE, LGND, CP, ODFL, ACN, CME, VRSN, KLAC, DECK, LULU, GRUB, MSFT, ADI, WIX

Bearish Stocks: CHTR, CB, JNJ, LOGM, CASY, ALL, JACK, WBA, HSIC

Be sure to check earnings release dates.