August 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
APA Short Oct $52.50 Call at $1.10

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The S & P 500 continues its slow grind up to the 2,500 objective. The market closed out yesterday at 2,476.35, up 6.05 points on the day.

We are now within 22 points on the objective.

The market managed to reclaime the 2,472 level I mentioned yesterday. The price level should continue to offer support, if it is tested today.

Earnings continue to be front and center. Apple reported and is trading about $9 to the upside pre open.

FEYE also reported and is trading about 7% to the uspide. I will look at possible opportunities on FEYE.

On the downside, AMC reported and is off about 25%.

This market is not terribly exciting at the moment. Perhaps it is the slow summer trading that is to blame. But, this is when you need to pay attention.

The market that seems to be coming right to resistance is the FXY. Watch to see if it can clear 87.50. If not, I would expect another downleg.

Today is our webinar at 12:00 EST. I will try and make this market exciting.

Continue to follow the resistance levels.

Here are the Key Levels for the Markets:

$VIX:

Minor level: 16.41
Major level: 15.63
Minor level: 14.84
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 ticked down and closed at 10.09. Look for resistance at 10.16 and 11.72.

If 10.16 holds as resistance, a move back to 9.38 would be expected.

$SPX:

Major level: 2,500.00
Minor level: 2,484.38
Minor level: 2,453.12 <
Major level: 2,437.50 **
Minor level: 2,421.88
Minor level: 2,390.62
Major level: 2,375.00
Minor level: 2,359.38
Minor level: 2,328.12
Major level: 2,312.50

The S & P 500 closed at 2,476.35. Support should be at 2,472.70. If the S & P 500 can clear 2,476.60, a move up to 2,484.40 would be expected.

Buying against support is still the best strategy.

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 143.56. If the QQQ can clear 143.75, I would expect a run up to 145.31.

And 143.36 is minor support.

Should pop today based on Apple trading to upside pre open.

IWM:

Major level: 146.88
Minor level: 146.09
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

The IWM closed again just above the minor 141.41 level. This level should continue to offer support.

142.19 is a minor level. If the IWM can clear this level, I would expect a move up to 142.97.

TLT:

Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00 <<
Minor level: 124.61 **
Minor level: 123.83
Major level: 123.44
Minor level: 123.03

The TLT closed at 124.64. If it now within 40 cents of the 125 objective. Watch to see if the TLT can clear 125, as it should be resistance.

123.83 should be support. Short term charts remain bearish.

GLD:

Major level: 125.00
Minor level: 124.22
Minor level: 122.66
Major level: 121.88 <<
Minor level: 120.32
Minor level: 119.53
Major level: 118.75
Minor level: 117.97

121.88 should still be the objective. 119.53 should be minor support. And 121.88 should be minor resistance.

XLE:

Minor level: 69.53
Major level: 68.75 <
Minor level: 67.97
Minor level: 66.41 **
Major level: 65.63 <<
Minor level: 64.85
Minor level: 63.28
Major level: 62.50
Minor level: 61.72

The objective should be to 68.75. For me to be convinced that this downtrend is over, the XLE would have to run to 72 on this drive. And 67.97 should offer resistance.

66.41 should be minor support.

FXY:

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
Minor level: 83.60
Minor level: 83.20
Major level: 82.81

The FXY hit a high of 87.44 yesterday. 87.50 should be resistance. A move under 87.13 would indicate the minor top is in.

86.91 is minor support. 87.89 is minor resistance.

AAPL:

Major levels for Apple are 153.13, 150, 146.88 143.75, and 140.63.

A good buy on Apple would be down around th 146 to 146.50 area.

Apple should open about $9 to the upside after reporting. Buy any pullbacks.

WATCH LIST:

Bullish Stocks: AGN, BA, BIDU, ALGN, FB, RTN, EXPE, BABA, MCD, LEA, ALXN, HON, ADP, CAT, DIS, IAC, SINA, CRM, ELS

Bearish Stocks: IBM, PANW, FFIV, BWLD, JACK, DXCM, QCOM, MD, SON, SIMO

Be sure to check earnings release dates