December 22, 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

UNIT Long at $17
Short January $17.50 Call @ $0.35

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Before I begin, I want to wish you and your family a Very Merry Christmas!

Because of the Holiday, I will not publish a daily update on Tuesday. I will be back with you on Wednesday.

There is one open position that expires today and that is the short $16 call on SNAP. I will send out an alert if an adjustment is reguired.

The S & P 500 closed 5.33 points to the upside. It closed at 2,684.58.

I mentioned yesterday that 2,684 should be a key level for the day.

The S & P 500 gapped up and hit a high of 2,692.64 before selling off to close at 2,684.58, which happens to be the level I mentioned yesterday.

For today, 2,684 to 2,688 should be the area to watch.

The VIX continues to trade around the long term 9.38 support level. The market should head up if the VIX sells off.

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 closed at 9.58, 20 cents above the 9.38 level.

10.16 should still be resistance. And support should bne at 9.18.

$SPX:

Major level: 2,734.40
Minor level: 2,724.23
Minor level: 2,705.07
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

2,670.90 should be support.

Watch to see if the market can hold 2,684.

And short term resistance could come in at 2,711.20. Short term momentum remains bullish.

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 157.55. The QQQ will still need two closes above 157.81 to move up to 162.50.

Support should be at 157. If the QQQ reclaims 157.81, I would expect support here.

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 closed at 153.47. It closed back above the 153.13 level.

Watch to see if the IWM can hold 153.13. If it cant' a drop to 151.56 could happen.

Biased for a move higher.

TLT:

Major level: 131.25
Minor level: 130.47
Minor level: 128.91
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 bounced and closed at 124.60. If it can clear 125, if should head higher.

Minor support is at 124.22.

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 120.31. 121.88 should be tested.

119.92 should offer support and 120.51 is minor resistance.

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 71.82. A close today above 71.09 implies a move up to 73.44.

70.70 should be minor support. Also, 70.31 should be strong support.

The daily chart is inching closer to 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 84.71. The low for the day was 84.55 before the FXY rallied.

If the FXY can clear 84.77, it should head higher. A close today above 84.55 and the FXY should test 85.16.

AAPL:

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

Apple closed above 175 yesterday. It closed at 175.04.

174.33 should be minor support.

WATCH LIST:

Bullish Stocks: GOOGL, TSLA, BIIB, LMT, BA, DIA, SPY, COST, RTN, LH, ACN, CLX, CAT, JPM, AFL, MSFT, GILD

Bearish Stocks: VMC, JACK, CLB, KEX, CRH, NFX, TDS, CXW, RRC, RDC

Be sure to check earnings release dates.