December 29, 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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Today of course, is the last trading day of 2017. And a full session today. Monday, the markets will be closed for New Year's Day.

Enjoy the long weekend and Have a VERY Happy New Year!

Light holiday trading continued yesterday, with a range for the S & P 500 of less than 5 points.

The market did close to the upside 4.92 points. It closed at 2,687.54.

And this morning, pre open, the S & P 500 should open almost 8.50 points to the upside. Based on the pre market activity, the open should be around 2,695. This would mean that the major 2,695.30 level should be tested today.

The fact that the market is making a push to the upside should not be a shock.

Actually yesterday, I said ... "In fact, a standard rule is to never short a quiet market when it is at a top."

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 10.20, 4 cents above the 10.16 level. The VIX hit a high of 10.44 yesterday, before heading lower.

Look for resistance at 10.55.

Support should be at 9.77.

$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

The S & P managed to reclaim 2,685.50, closing at 2,687.54. 2,685.50 should be support.

With an anticipated higher open, I would expect 2,687.40 to offer support on a pullback.

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 156.73. The QQQ is still holding above the 156.25 support level. This level should be support.

156.64 is minor support.

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 153.73. Two closes above the 153.91 level and the IWM should test 156.25.

153.13 should offer support. 153.91 could offer minor resistance.

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 closed at 126.66. Still biased for a retest of 128.13.

Minor support is at 126.17. And minor resistance is at 127.34.

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 122.85. A close today above 122.66 and the GLD should test 125.

121.88 should be support now. 126.56 could offer 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 72.47. 73.44 should be the objective.

72.27 should be now be minor support.

The daily chart is inching closer to an uptrend. If the daily moves into an uptrend, I would expect higher highs to follow.

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 85. The FXY came within 8 cents of the 85.16 level.

Minor support is at 84.96.

AAPL:

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

Apple closed at 171.08, holding above the low from Tuesday. Apple did take out Tuesday's high of 171.47. Lookm for lower levels to act as support and a retest of 175.

170.70 should be minor support.

WATCH LIST:

Bullish Stocks: NTES, SPY, FDX, PH, FLT, HD, CLX, PLCE, COL, UNP, CAT, DE

Bearish Stocks: JAZZ, RNR, EIX, EPR, AXS, AIV, DISH

Be sure to check earnings release dates.