December 15, 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

SNAP Long at $15.20
Premium Collected - $3.24
Short Dec 22nd- $16 Call @ $0.45

AMC Long at $15.27
Premium Collected - $1.98
Short Dec $17.00 call @ $0.20

THC Long at $14.63
Short Dec $15.50 call @ $0.30
Premium Collected - $1.70

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You should have two short call positions that expire today, if you followed the recent alerts. They are the $17 call on AMC and the $15.50 call on THC. Both are trading under their respective strike prices, so it appears likely you will keep your stock.

It will also mean that you will book your profit from selling the calls today.

Once again, the S & P 500 managed to trade above the 2,666.05 level. And once again, it sold off to close under that level.

Yesterday's close was 2,652.01. The market was off 10.84 points for the day.

This is still above the downside level of 2,646.53, but the S & P 500 did close under the major 2,656.30 level.

The close was also just under the weekly support level of 2,654.

The midpoint of last week's price bar was 2,644.97. For the market turn bearish, I would expect a close under that price. Even with yesterday's sell off, the S & P is still above that price.

There are two other facts to consider at the moment. The first is that the VIX did not make a substantial move. I still expect resistance at the 10.94 level and the VIX closed under it, at 10.49.

The other factor with the VIX is that both the 30 and 60 minute charts are downtrending. Even if the VIX were to rally, I would expect that rally to fail and the VIX to head back down.

As for the S & P 500, both short term 30 & 60 minute charts in strong uptrends. (Which you would expect with the VIX in the opposite formation.) You would expect a rally once the market finds support.

Pre open, the S & P 500 is trading almost 8 points to the upside, A higher open is expected. Based on where the S & P 500 is trading pre open, the market should open around 2,660.

This would mean that on a retest, look for support in the 2,654 to 2,656 area.

Continue to follow the resistance levels.

Here are the Key Levels for the Markets:

$VIX:

Major level: 14.06
Minor level: 13.67
Minor level: 12.89
Major level: 12.50
Minor level: 12.11
Minor level: 11.33
Major level: 10.94
Minor level: 10.55
Minor level: 10.16
Major level: 9.38 **
Minor level: 8.99 <
Minor level: 8.20
Major level: 7.81

The VIX was as low as 9.78, before rallying to hit a high of 10.54. The high was just one cents under the minor 10.55 level.

Resistance should be at 10.94. And if the VIX opens under 10.55, that level could offer resistance.

$SPX:

Major level: 2,695.30
Minor level: 2,685.55
Minor level: 2,666.05 **
Major level: 2,656.30 <
Minor level: 2,646.53 **
Minor level: 2,626.98
Major level: 2,617.20
Minor level: 2,607.43
Minor level: 2,587.88
Major level: 2,578.10

To move higher, the S & P 500 will need two closes above 2,666.05. The S & P 500 did retest the 2,666.05 level and failed.

Minor support is at 2,646 and 2,650.

QQQ:

Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25 **
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
Minor level: 152.34
Minor level: 150.78
Major level: 150.00

The QQQ closed at 155.88. The QQQ one again, take out the 156.25 level, but closed under it.

Minor support is at 155.66 and 155.47.

IWM:

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 <
Minor level: 149.22
Minor level: 147.66
Major level: 146.88

The IWM reversed to close at 150.10. 150 should be support, but if the IWM breaks under that level, look for lower lows.

149.22 should be minor support. And 151.56 is minor resistance.

TLT:

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

The TLT closed at 127.87. The TLT came within 30 cents of the 128.13 objective.

127.34 is minor support. And 128.91 is minor resistance.

GLD:

Major level: 125.00
Minor level: 124.22
Minor level: 122.66
Major level: 121.88
Minor level: 121.10
Minor level: 119.53 **
Major level: 118.75 <
Minor level: 117.96
Minor level: 116.41
Major level: 115.63

The GLD closed at 118.92. This is just above the major 118.75 level.

To move up to 121.88, the GLD would need two closes above 119.53. Watch to see if the GLD can clear 119.53.

I would expect resistance at the 121.88 level.

XLE:

Major level: 73.44
Minor level: 72.66
Minor level: 71.09
Major level: 70.31
Minor level: 69.92
Minor level: 69.14 **
Major level: 68.75 <
Minor level: 68.36
Minor level: 67.58
Major level: 67.19

The XLE closed at 69.24. 70.31 should still be the objective.

Short term momentum has shifted to the upside. 69.14 is a short term support level. If 69.14 cannot hold, I would expect 68.75 to.

The daily chart is close to crossing into an uptrend.

FXY:

Major level: 86.72
Minor level: 86.53
Minor level: 86.14
Major level: 85.94
Minor level: 85.75
Minor level: 85.36
Major level: 85.16 <
Minor level: 84.96 **
Minor level: 84.55
Major level: 84.38 <<

The FXY closed at 85.49, moving up .15 on the day. We had been anticipating a bounce off the major 84.38 level and yesterday, we got it.

The FXY should test 85.94. 85.16 should be support.

84.96 should be minor support.

AAPL:

Major levels for Apple are 175, 171.88, 168.75, 165.63, 162.50, and 159.38.

Apple continues to hold above the 171.88 level. This level should continue to offer support.

If Apple bounces off 171.88, a move to 173.44 should happen.

WATCH LIST:

Bullish Stocks: BA, LMT, FDX, FLT, AET, MCD, BLUE, SAGE, WYNN, CLX, CAT, CBOE, UTX, CRI, RH, RL, PSX, VLO

Bearish Stocks: AGN, XEC, EOG, CRUS, APC, APA, NFX, AKR, PI, CXW, WU, FNSR

Be sure to check earnings release dates