December 2, 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

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We are back after the shortened holiday week. The short Friday session closed out 12.06 points lower for the day. The day closed out at 3,141.57.

The Friday session had a very narrow range day of only 10.96 points. But, this was actually greater than the Wednesday session, which had a range of 10.85.

When trading around holidays, I generally expect range contractions. But, as you know, this narrow range trading has been going on for three weeks now.

The range for the week was only 36.82 points. This was another contraction. The weekly average true range is now 65.67, so last week's range was only 56% of the weekly average.

The week closed out 31.35 points higher. And it closed at 65% of the bar, so the odds favor that last week's high should be violated before the low.

The support area from last week's price bar is in the 3,130 to 3,136 area.

Friday also closed out the month of November. And the month closed out 103.42 points higher.

The monthly range was 104 points. This also represents a contraction of 64% based on the monthly average true of 161.29.

But the key factor for the month is that the S & P closed well above the upper band on the monthly chart. The upper band is now 3,020.57, so for the month, the S & P closed about 120 points above the upper band.

This level should still be support. And the market is showing its strength once again by closing above it.

So, now the market is closing above the upper band on the monthly chart and has taken out the 3,125 objective we have been calling for.

So, what is next?

With this strength, I would not think about shorting until there is strong price reversals to the downside.

The sentiment indicators and the VIX are all at levels to suggest that a reversal is coming.

The level I think we need to watch closely is the minor 3,164.08 level. This would be an area where resistance can come in.

And November's high was only about 10 points below it.

Support from the November monthly price bar is in the 3,102 area. Below 3,102, there is support at 3,095.

Earnings do continue this week. CRM reports tomorrow after the close. RH reports Wednesday after the close.

DOCU and ULTA report Thursday after the close.

Pre open, the S & P is trading about one point higher.

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 closed out at 12.64 on Friday. This put the VIX back above the major 12.50 level.

The 13.28 level should still be resistance. But if the VIX has two closes above the 13.28 level, it should move up to 15.63.

With the VIX down around long term support, a bounce could be expected.

SPX:

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
Minor level: 2,695.35
Major level: 2,656.30

The S & P closed at 3,141.57. The S & P has now cleared and closed above the major 3,125 level. This would suggest that it should now be support.

At this point, the minor 3,134.76 level should be the key level to watch. I would now expect support there and if the S & P can close above it, I would expect the move to 3,164.

3,134 is also technical support.

On the upside, the 3,164 level could offer resistance.

QQQ:

Major level: 206.26 <
Minor level: 205.48
Minor level: 203.91 **
Major level: 203.13 HIT
Minor level: 202.35
Minor level: 200.78
Major level: 200.00
Minor level: 199.22
Minor level: 197.77
Major level: 196.88

The QQQ closed at 205.10. With a close above 203.91, the QQQ should now test 206.26. And Friday, the QQQ came to within 50 cents of it.

203.91 should now be minor support.

Technical support should be around the 203 area as well.

IWM:

Major level: 168.75
Minor level: 167.19
Minor level: 164.06 **
Major level: 162.50 < HIT
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 161.77. And yesterday's high was 162.79, which you may recognize was 29 cents above the 162.50 target.

At this point, to move lower, the IWM will need two closes under 160.94.

It did close under 162.50, so watch to see if the IWM can clear it. It will need to in order to head up to the next level.

160.94 should be support.

Technical support is around 160

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

The TLT closed at 140.42. The key for the TLT is now the minor 141.41 level. If it can close above this level for two days, I would expect a move up to 143.75.

The 139 to 140 area should still offer technical support.

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 137.86. The GLD did manage to close above the major 137.50 level again.

The next level is 138.28. Two closes above this level and the GLD should head up to 140.63.

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

Short term, there is technical resistance at 139. And technical support is around 136.

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 58.89. The XLE has now closed just under the major 59.38 level. It will need to clear this level to head higher.

At this point, if the XLE has two closes above 60.16, it should move up to 62.50.

58.60 should now be support. And the 59.50 area should offer technical resistance. It will need to clear this area to head higher.

AAPL:

Major level: 281.25
Minor level: 277.35
Minor level: 269.54
Major level: 265.63 HIT!
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 267.25. Apple will need two closes above 269.54 to move higher.

Watch the 261.71 level on the downside. It should be support until violated.

274.72 is the upper band on the daily chart. Watch this level on the upside as well.

Technical support should be in the 265 area.

WATCH LIST:

Bullish Stocks: AMZN, LMT, ROP, HUM, SHOP, NTES, ADBE, FLT, DPZ, BDX, LULU, VRTX, NVDA, FB, BABA, RH, PEN, V, DECK, ROKU, COUP

Bearish Stocks: AAP, TAP, IRBT, FL, CHL, OXY, IRM