April 17, 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

ET Long at $11.78
Premium Collected $0.35

DBX Long at $19.70
Premium Collected $0.75

ET Long at $7.50
Premium Collected $0.60

AGNC Long at $13.19
Premium Collected $1.55
AGNC Short April 24th - $13.00 call @ $0.35

MFA Long at $4.20
MFA Short April $5 Call @ $0.40

KRO Long at $8.08
................................................................................

Today is the expiration of the April monthly options. We only have one position that expires today and that is the short $5 call on MFA, which will no doubt expire worthless.

I also suggested a new position yesterday on KRO. This is a swing trade suggestion and I have not suggested selling options at this point.

The S & P 500 closed modestly higher yesterday. It closed the day at 2,799.55, up 16.19 points on the day.

The range for the day was only 42.19 points. This was the third consecutive day where the daily range was in the 40s.

Granted, because of large gap opens, the intraday ranges have been reduced, but when you consider that the daily average true range is 111.88, a range less than one half the average is a real contraction.

This does tell us that an expansion should follow.

And with the daily bar closing at 84% of the range of the bar, the follow-through should be to the upside.

And this will certainly be the case, with the S & P trading about 83 points higher before the open.

This trading is being fueled by some good news on various treatments for Covid-19.

Assuming this trading holds up through the open, the S & P should open around 2,882.

This would be about 76 points above yesterday's high.

It would also put the S & P above the minor level above the 2,812.50 target we have been looking for.

Certainly, 2,812.50 will be taken out, which would suggest that the minor 2,851.65 level would be support on a pullback.

In scaling out to look at how the weekly price bar is shaping up through yesterday, it has contracted. The weekly range through yesterday is only 130.68 points. This is 71% of the weekly average true range, which is 184.19.

And yesterday's close was only about 17 points above the open. And only 9.73 points higher than last week's close.

With an anticipated bull gap open of about 83 points, this would project to an open around 2,882. This projected open is still about 25 points below the weekly average true range.

If I project the weekly average true range off the low, it projects to a high of 2,905.

Assuming this price gets hit today, it would put the S & P within 80 points of the midband on the daily chart.

So, watch this level on the upside. And last week's high of 2,818 should be support on a pullback.

As I mentioned yesterday, the 60 minute chart had crossed into an uptrend, so it does imply higher prices will follow.

Here are the Key Levels for the Markets:

$VIX:

Minor level: 44.53
Major level: 43.75
Minor level: 42.97
Minor level: 41.40
Major level: 40.62 <
Minor level: 39.84
Minor level: 38.28
Major level: 37.50
Minor level: 36.72
Minor level: 35.16
Major level: 34.38
Minor level: 33.60
Minor level: 32.03

The VIX closed at 40.11. The VIX closed 0.73 points lower for the day.

The VIX did cross into a downtrend on its 60 minute chart. The midband is 52 and should be resistance.

With a close under 40.62, look for resistance at this level and a move under 39.84.

S & P 500:

Minor level: 3,007.85
Major level: 2,968.80
Minor level: 2,929.75
Minor level: 2,851.65 **
Major level: 2,812.50
Minor level: 2,773.45 **
Minor level: 2,695.35
Major level: 2,656.30
Minor level: 2,617.25
Minor level: 2,539.06
Major level: 2,500.00
Minor level: 2,460.95
Minor level: 2,382.85
Major level: 2,304.75
Minor level: 2,226.65

The S & P closed at 2,799.55. The high for the day was about 6 points under the major 2,812.50 level.

And the market should open above this level today, so it should be support on a pullback.

And the minor 2,851.65 level should also be support.

The 2,700 area should be strong technical support.

QQQ:

Major level: 218.75
Minor level: 217.19
Minor level: 214.06
Major level: 212.50 Hit
Minor level: 210.93 ***
Minor level: 207.81
Major level: 206.25
Minor level: 204.69
Minor level: 201.56
Major level: 200.00
Minor level: 198.44
Minor level: 195.31
Major level: 193.75

The QQQ closed at 213.25. The next minor level is 214.06.

Two closed above 214.06 and the QQQ should test 218.75.

Support is now at 212.50.

Technical support is also around 205. And support from yesterday's daily bar also in the 212.50 area.

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 <
Minor level: 148.44 **
Minor level: 145.31
Major level: 143.75

The IWM closed at 116.91. The IWM closed above the lower band on the daily chart for the sixth day, which is now 112.41.

The lower band should now act as support.

119.20 is a resistance level and if the IWM can clear it, then it should head higher.

TLT:

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: 155.48
Minor level: 153.91
Major level: 153.13
Minor level: 152.35

The TLT closed at 170.09. This put the TLT back above the upper band on the daily chart, which is 168.69.

This now tells us to expect another retest of the upper band after it closes back inside.

Watch to see if it holds the upper band today.

Support should be around 167.

GLD:

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
Minor level: 153.91
Major level: 153.13
Minor level: 152.35
Minor level: 150.78
Major level: 150.00

The GLD closed at 161.71. The GLD is overbought and right at the upper band on the daily chart, which is 165.03.

A close today under 161.72 and the GLD should drop to 159.38.

The 165 area should now be resistance. And 160 should be support.

XLE:

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
Minor level: 49.22
Minor level: 47.65
Major level: 46.88
Minor level: 46.09 **
Minor level: 44.53
Major level: 43.75

The XLE closed at 30.69. The XLE is barely holding the lower band on the daily chart.

The lower band is 30.31 and yesterday's low was 34 cents above the lower band.

Watch to see if the lower band holds as support. If it does, expect a move higher. The 60 minute chart has crossed into an uptrend, so I am expecting the lower band to hold as support.

AAPL:

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 **
Minor level: 278.13
Major level: 275.00
Minor level: 271.88
Minor level: 265.63
Major level: 262.50

Apple closed at 286.69. Two closes above 290.63 and Apple should test 300.

Look for a move back up to the major 287 level, which was hit yesterday. Technical support is around 280.

Apple has crossed into an uptrend on the 60 minute chart. And 285 area should be technical support.

WATCH LIST:

Bullish Stocks: AMZN, REGN, VRTX, AMGN, DG, LLY, FCN, WMT, AKAM, DOCU, CCOI, CNC, FIZZ, STX, CAG

Bearish Stocks: QID, SQQQ, SPXS, TECSWHR, WCN, DGX, DLTR, CRI, WPC, OMC