December 19, 2019 - 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 $0.80

TEVA Long at $9.78
TEVA Short Dec 20th - $10 Call - $0.26

DBX Long at $17.18
DBX Short Jan 31st-$17 call @ $0.70

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Yesterday, I suggested you close out the CASY debit spread. It turned out to be a two-day trade. The two-day return ended up at 24%.

The S & P continues to trade in a tight range. The market ended up closing 1.38 points to the downside. The day closed out at 3,191.14.

The market did make a higher high and a higher low, but the concerning factor is that once again, the S & P traded in a range about one-third of the daily average true range.

The intra day range was only 7.34 points. And the daily average true range is 20.61.

So, the daily range was about 1/3 of the average again.

This all adds up to the fact that the thrust is not very strong. And with the sentiment indicators overbought, it adds more concern than a pullback could happen.

But, these indicators can be overbought a lot longer than we think they can.

And yesterday's down to up volume was only 0.55, which was less than the Tuesday reading of 0.63.

For a market pullback to happen, we would expect an increase in the down to up volume ... and a push higher in the VIX.

The VIX did close slightly higher yesterday, but not a big enough push to think the reversal is here.

The key levels for today are going to be the high of around 3,198 and the low, which is 3,191.

The last two days' highs and lows are the same level, so a breakout or breakdown should lead to a strong move.

But, as I have been saying, with the short term charts strongly bullish, a rally would be expected after a pullback.

MU reported last night and is trading about $1.80 higher. NKE reports today after the close.

Here are the Key Levels for the Markets:

$VIX:

Major level: 21.88
Minor level: 21.10
Minor level: 19.53
Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.85
Minor level: 13.28
Major level: 12.50 <
Minor level: 11.72 **
Minor level: 10.16
Major level: 9.38

The VIX sold off again and closed out the day at 12.58. The VIX closed just above the major 12.50 level.

At this point, I would still expect resistance at 13.28. The VIX would need to close above 13.28 for a reversal in the market to happen.

12.25 is also a technical resistance level.

SPX:

Major level: 3,281.20
Minor level: 3,242.15
Minor level: 3,164.08 ***
Major level: 3,125.00 < Hit
Minor level: 3,085.95
Minor level: 3,007.85
Major level: 2,968.80
Minor level: 2,929.73
Minor level: 2,851.58
Major level: 2,812.50
Minor level: 2,773.45

The S & P closed at 3,191.14. The short term target should be to the minor 3,183.58 level.

The 3,183.58 level should also be a support level.

Technical support is around 3,172.

QQQ:

Major level: 212.52
Minor level: 211.74
Minor level: 210.17 **
Major level: 209.39 Hit
Minor level: 208.61
Minor level: 207.04
Major level: 206.25
Minor level: 205.48
Minor level: 203.91
Major level: 203.13
Minor level: 202.35
Minor level: 200.78
Major level: 200.00

The QQQ closed at 209.55. The QQQ closed just above the major 209.39 level.

The next minor level is 210.17. Two closes above 210.17 and the QQQ should test 212.52.

208.61 is minor support. 208 should offer technical support.

IWM:

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 165.02. With a close yesterday above 164.06, the IWM should move up to 168.75.

The minor 164.06 level should offer support.

162.50 should offer strong support. Not only is it a resistance level, but it is a technical support level.

Short term charts remain bullish, so momentum is still bullish. Same as yesterday. The 163 area should be technical support.

TLT:

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 HIT
Minor level: 135.84
Minor level: 132.81
Major level: 131.25

The TLT closed at 136.47. The TLT will still need two closes above 138.28 to move higher. Two closes under 135.84 and the TLT should continue down to 131.25.

Watch if the TLT can reclaim the 137.50 level. If it can't, look for it to move lower.

GLD:

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: 135.16
Major level: 134.38

The GLD closed at 139.02. A break under 138.28 and the GLD should continue lower.

137.50 should be strong support. So if the GLD does break under it, I would expect it to head lower.

The key level is 134.38 on the downside. If the GLD has two closes under this level, it could drop to 125.

Technical resistance is around 140. And the 139.85 level should be resistance.

XLE:

Minor level: 63.28
Major level: 62.50
Minor level: 61.72
Minor level: 60.16 **
Major level: 59.38 <
Minor level: 58.60
Minor level: 57.03
Major level: 56.25
Minor level: 55.86
Minor level: 55.08
Major level: 54.69

The XLE closed at 61.39. This was the second close above 60.16, which now implies that the XLE should move up to 62.50.

The XLE also closed just above the midband again. This level is now 61.

The 61 area should be technical support.

The XLE has still not crossed into an uptrend on the daily chart, but it is inching closer.

AAPL:

Major level: 281.25 HIT
Minor level: 277.35
Minor level: 269.54
Major level: 265.63
Minor level: 261.72
Minor level: 253.91
Major level: 250.00
Minor level: 246.88
Minor level: 240.63
Major level: 237.50

Apple closed at 279.74. At this point, Apple will need two closes under 277.35 to move lower.

And minor support should now be at 269.54. And technical support is around 275

Needless to say that short term trends remain bullish.

WATCH LIST:

Bullish Stocks: GOOGL, SHOP, TSLA, ADBE, AVGO, MA, DPZ, ASML, AAPL, BDX, ZBRA, NVDA, GS, BABA, V, MCD, URI, CB, MSFT, JPM

Bearish Stocks: SPG, SJM, WBA, PLCE, CVLT, CAKE, SAVE, IRM, FL, BEN

Be sure to check earnings release dates.