August 24, 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:

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APA Long Oct $47.50 Call at $3.45

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After Tuesday's long range day, the market pulled back slightly yesterday, closing down 8.47.

On the day, the price action formed an inside bar, with a lower high and a higher low.

Once again, the previously identified support areas were tested in the market. Namely, the high for the day was 2,448.91, which is the upper end of the resistance level from last week's weekly price bar.

And the low for the day was 2,441.41, which is at the lower end of last week's weekly price bar resistance area.

Intra day, the S & P 500 made three swings off these levels.

The S & P 500 closed at 2,444.04, which is still above the major 2,437.50 level, but under the upside level of 2,453.12.

Pre open, the S & P 500 is trading about 6.50 points to the upside, so no doubt 2,453 should be tested today.

If the market can clear that level, expect it to offer support.

Also, the 2448 area should offer support if the S & P 500 opens above it.

Volume continues to be light because of the summer sessions.

Continue to follow the resistance levels.

Here are the Key Levels for the Markets:

$VIX:

Major level: 18.75
Minor level: 17.97
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 <

I mentioned yesterday that 12.50 should be resistance and yesterday's high was 12.59. It did offer the expected resistance.

Minor resistance is at 14.06 and 13.28. 10.94 is a minor support level.

$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 will need two closes above 2,453.12 level to confirm a move up to 2,500.

Minor levels are 2,445.30 and 2,437.50. I would expect support at 2,437.

Watch the 2,445.30 level today. An open above it and it should offer support.

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

Like the S & P 500, the QQQ formed an inside day as well.

The QQQ closed at 142.69. Objective should be to 143.75. 142.19 should offer support. And resistance could come in at 143.36.

IWM:

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: 136.72
Minor level: 135.15 <
Major level: 134.37

The IWM closed at 136.07. The IWM should test 137.50.

135.16 should still offer minor support.

TLT:

Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56 <
Minor level: 126.17 **
Minor level: 125.39
Major level: 125.00
Minor level: 124.61
Minor level: 123.83

The TLT had its first close above 126.95. A close today above 126.95 and the TLT should move up to 128.13.

The TLT just moved into an uptrend on its daily chart. Expect it to head higher.

127.73 could offer minor resistance. And 126.95 should be minor support.

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

The GLD closed at 122.67. A close today above 122.66 and the GLD should move up to 125.

122.27 should be minor support. If that does not hold, I would expect 121.48 to. 124.22 could offer minor resistance.

XLE:

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 **
Minor level: 60.16
Major level: 59.38

The XLE closed above 62.50, at 62.68 yesterday. I would not expect the XLE to move further than 65 on this bounce.

62.30 should be minor support. And 63.28 resistance.

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 88.22 yesterday. A close today above 87.89 and the FXY should test 89.
87.50 should be major support. 88.09 is minor support.

AAPL:

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

160.94 is minor resistance. Apple will need to clear this level to move higher.

158.59 should offer minor support.

WATCH LIST:

Bullish Stocks: STMP, STZ, ANET, BABA, COST, ADBE, SBAC, AMT, MA, CLX, WEN, TAL, CNP

Bearish Stocks: AYI, GWW, SNA, FFIV, BWLD, CSO, AAP, CLB, EOG, GPC, RS, MMP, SLB

Be sure to check earnings release dates.