August 4, 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
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DYN Long at $12.55
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APA Long Oct $47.50 Call at $3.45

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The 2,472 level continues to be the most important price level for the S & P 500 this week.

Every time the market got above 2,472 it sold off. And every time is got below it, it rallied.

What makes this price so important?

It is rather simple. It is the balance point from last week's weekly price bar. And with the summer slow down, it seems that all the market is doing is trading around that level.

Basically, the market is deciding what the next move will be. It is trading in a tight range at historic highs and no one wants to make new commitments.

We still have an objective for the S & P 500 at 2,500. And the market is within 25 points of that objective.

The average true range continues to drop and yesterday formed an inside day.

So, for today, you want to watch yesterday's high and low and see if either one is violated. Price should continue in that direction.

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 closed at 10.44. It has closed above 10.16 for two days, so a push up to 12.50 maybe possible. 10.94 should still be minor resistance. And 11.72 should be a level that would be tough to break through.

9.77 should be minor support.

$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 2,472.16. Minor support should be at 2,472.70 and 2,468.80.

Watch the 2,480.50 level. The S & P 500 needs to clear this level to head higher.

Buying against support is still the best strategy. Sounds like yesterday.

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 143.39 yesterday. And like the S & P 500, formed an inside bar.

Support should be at 143.16. If the QQQ can get back above 143.75, I would expect that level to offer support.

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 continues to sell off, closing down .70, at 139.53. A close today under 139.85 and the IWM should test 137.50.

131.25 should be major support for the IWM.

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 broke through the 125 level, closing at 126.

Did someone mention a straddle?

The daily chart is close to moving into an uptrend. If that happens, a move to around 131 would be possible. But, the TLT will need to close above 126.56 for that to happen.

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

At this point, to move lower, the GLD needs two closes under 120.32.

Minor support is at 119.53. And minor resistance is at 120.70.

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 XLE closed back under the 65.63 level. yesterday. The minor 64.85 level is the major level to watch. Two closes under that price and the XLE should test 62.50.

66.02 is minor resistance. And 65.23 is 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 popped and closed just under the 87.50 level. It closed at 87.48. This is a key level at the moment, and like the TLT strangle strategy, it could be applied here.

87.11 is minor support. 87.70 is minor resistance.

AAPL:

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

Apple pulled back slightly after its earnings gap. 154.69 is minor support. Watch the levels for the gap.

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