December 20, 2016 - MDT Pro Tips A.M.

CURRENT POSITIONS:

GOGO Long at $19.93
Total Premium Collected $1.95
?
ASNA Long at $14.20
Total Premium Collected $.75

DUST Long $4.50
Total Premium Collected $.70

DYN Long at $12.55
Premium Collected $.48

FEYE Long at $13.65
Total Premium Collected $.68

DDD Long at $15.16
Total Premium Collected - $.49
Short Dec 23rd - $15.50 call - $.25
........................................................................................

I mentioned yesterday that the S & P 500 had a range contraction last week.? And yesterday followed suit with the same price action.

The range for the day was 9.26 points compared with a daily average true range of 16.39.

For the day, the S & P 500 closed at 2,262.53, up 4.46 for the day.

There is no question the market is overbought from a technical standpoint, however the upside objective for the S & P 500 still stands at 2,281.30.

And yesterday I mentioned that if the VIX could close under 12.11 for two days, it should continue to drop.? Yesterday was the first close under 12.11 with a close of 11.71, just a penny under the minor 11.72 support level.

So, if the VIX can close under 12.11 today, it should continue to drop.? I would expect a move to 10.94 if that happens.

Watch the 12.11 level today.? And 12.50 should be resistance as well.

Continue to monitor the levels for entry points.

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
Major level ? 9.38

A close today under 12.11 and the VIX should drop to 10.94.? 12.50 should be resistance, along with 12.11.

11.33 should be minor support.

$SPX:

Major level ? 2,281.30
Minor level ? 2,273.48
Minor level ? 2,257.82 **
Major level - 2,250.00 **
Minor level - 2,242.18
Minor level - 2,226.62
Major level - 2,218.80

2,261.70 is a short term support level and the S & P 500 closed just above it.? Two closes under 2,261.70 and the market should drop to 2,250.

Short term resistance is at 2,265.60.? Watch the 2,261.70 level.

QQQ:

Major level - 121.88
Minor level - 121.10
Minor level - 119.53 ***
Major level - 118.75 *
Minor level - 117.97
Minor level - 116.41
Major level - 115.63
Minor level - 114.84

The QQQ closed at 120.09 yesterday. The objective is still to 121.88.?? The 119.53 level I mentioned yesterday that should be support, performed as expected, with a low of 119.55.

120.12 is a minor level to watch today.? If the QQQ can get above it, it should act as support.? 120.70 is minor resistance.

TLT:

Major level ? 125.00
Minor level ? 124.22
Minor level ? 122.66
Major level ? 121.88
Minor level ? 121.09
Minor level ? 119.53
Major level ? 118.75 *
Minor level -? 117.96 *
Minor level ? 116.41
Major level ? 115.62

The TLT closed at 118.40 yesterday.? 118.75 should be resistance.? Objective for the TLT should still be down to 115.62.

Multiple timeframes remain bearish.

GLD:?

Minor level: 113.28
Major level: 112.50
Minor level: 111.72
Minor level: 110.16
Major level: 109.38 **
Major level: 106.25
Major level: 103.13

109.38 should now be resistance.? Still looking for a downside objective of 100.

There is a minor resistance level at 108.59 and the GLD closed right on it yesterday.? A close today under 108.59 and the GLD should push back down.? If it holds 108.59, look for a move up to 109.38.

XLE:

Major level ? 78.13
Minor level ? 76.56 **
Minor level ? 75.78
Major level - 75.00
Minor level - 74.22
Minor level - 72.66
Major level - 71.88
Minor level - 71.10
Minor level - 69.53

Objective should be to 78.13. The XLE close one cent under the minor 76.17 support level yesterday. Buying against support is still the best strategy on the XLE.

If the XLE can get above 76.17 today, look for it to act as support.? If not, I would expect 75.98 to offer support.

FXY:

Minor level: 87.11
Minor level: 86.33
Major level: 85.94
Minor level: 85.55
Minor level: 84.77
Major level: 84.38
Major level: 82.81
Major level: 81.25 **
Major level: 79.69

Like the TLT, the FXY bounced off its oversold condition.? I don?t see it going beyond 83.20, but if it does, it could retest 84.38.? If the FXY can hit 85.94 on this drive, it is possible the downtrend could be ending.? However, 84.38 should be strong resistance.

Opportunity continues to exist to short rallies.

AAPL:

Major levels for Apple are 118.75, 115.63, 112.50, 106.25,
100, 93.75, and 87.50.

Apple closed above 115.63 again, at 116.64.? If Apple close today above 116.41, it should run to 118.75. ?Buying against support is still the best strategy.

WATCH LIST:

Bullish Stocks: DIA, AVGO, HSY, ALGN, XOM, VMW, BLUE, OKS, CCOI, COP, LUV, BIG, CLH, MSFT

Bearish Stocks:? ALXN, TLT, VRSN, CRM, TRIP, CTRP, VRX

Be sure to check earnings release dates.