December 22, 2016 - 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
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The markets continue to trade in a narrow range and I suspect this will go on until the end of the year. With prospects of lower tax rates next year, there has not been a lot of year end tax selling.

And with a short holiday week next week, I suspect that markets will be relatively quiet.

Yesterday, the S & P 500 ended up closing a modest 5.58 points to the downside.? The high for the day was 2,271.23, which is just above the 2,270 minor level I mentioned yesterday.

The low for the day was 2,265.15, which was 45 cents under the 2,265.60 minor support level I mentioned.

Essentially, the S & P 500 traded between the two levels I outlined in yesterday?s update.

The bigger factor was that the low on the VIX yesterday was 10.93. ?As you know, we were looking for an objective on the VIX to 10.94.? One cent is close enough to say it got hit.

The question now is what happens next?

To answer that, you need to monitor the 10.94 level on the VIX.? If the VIX drops under that level, I expect it to head lower and the markets higher.

However, if the VIX finds support at 10.94, it could bounce and the markets should pull back a bit further.

The S & P 500 still has an upside objective to 2,281, which is about 10 points away.

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

Objective of 10.94 hit.? 11.72 should offer minor resistance.? 11.33 could also offer resistance.? If the VIX breaks under 10.94, 10.55 could be 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

Active objective is to 2,281.30.? 2,265.60 should continue to offer support.? If the market breaks under that level, it should become resistance.

If the S & P 500 can close above 2,269.50, I would expect the next run to 2,281.

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 objective is still to 121.88.? 120.31 should still offer minor support. 120.90 could offer 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 continues its bounce and closed at 118.33.? 118.75 should be resistance and where the downtrend should resume.? Long term objective still remains 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

The GLD crossed into a downtrend on its daily chart.? Though it is oversold, I would suspect that any bounce would fail.? Most likely at the 109 level.

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.? Yesterday?s low was 75.73, just 5 cents under the 75.78 level I mentioned yesterday that should act as support. ?The high for the day got just above the 76.17 minor resistance level.

Look for 75.78 to continue 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
Minor level: 81.64
Major level: 81.25 **
Major level: 79.69

Like the TLT, the FXY continues to bounce from its oversold condition.? It closed at 82.08 yesterday.? It should try and test 82.81.

Opportunity continues to exist to short rallies.

AAPL:

Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 1
00, 93.75, and 87.50.

The objective should be to 118.75. ??Intra day momentum is bullish.

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