December 9, 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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The week closed out Friday with the S & P 500 closing 28.48 points higher. The week closed out at 3,145.91.

This put the S & P about 20 points above the major 3,125 level. We had expected a retest of the level and the market managed to clear it.

Even though the market closed almost 30 points higher, the intra day range was only 15.98 points. This was due to the fact that the market gapped 17.19 points higher at the open after the jobs report.

Since the bottom on Tuesday, the S & P rallied about 80 points in four days.

The Friday daily price bar closed at 71% of the range. This does suggest that the odds are about 3 to 1 that Friday's high of 3,150.60 should be violated before the low of 3,134.62

The support area from Friday's daily bar is in the 3,140 to 3,142 area.

The weekly price bar closed marginally higher. The week closed out 4.93 points higher.

And it closed out slightly higher than the open. The week opened at 3,143.85
and closed out at 3,145.91.

The weekly price bar turned out to be a hammer bar. So support should be in the 3,108 to 3,110 area.

Pre open, the S & P is trading about 2 points lower. The bias for the week is a violation of the high before the low, similar to Friday's daily price bar expectation. This is because the weekly bar closed at 94% of the range.

And the range expanded. The weekly range was 80.27 points. And the weekly average true range is 66.71 points. So the weekly range was 120% of the average.

This was the first week since October 11th where the weekly range exceeded the average range.

COST reports earnings Thursday after the close. And ADBE reports Thursday after the close as well.

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 13.62 yesterday. The objective for the VIX should be to 12.50.

Friday's low was 13.19 or 69 cents above the major 12.50 level.

14.85 should offer resistance on the upside. And technical resistance is around 14.08.

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 3,145.91. The S & P took out the major 3,125 level by about 20 points.

3,135 should now be a minor support level.

I am biased for a move up to the 3,164 level. Technical support is in the 3,123 area.

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 205.00. The QQQ should test the 206.26 level.

At this point, support should be at the 203.91 level.

203.30 is a minor technical resistance level. Watch for support at this level on a pullback.

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 162.82. The IWM took out the major 162.50 level.

At this point, support should be at the minor 160.94 level.

Minor technical support is now at 161.20.

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 138.36. Expectation is still for a drop to 137.

139.85 should still be resistance. Technical resistance is around 139.

If the TLT breaks under 137.50, I would expect it to continue lower.

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 137.62. Watch the 140.63 level on the upside. The GLD needs to clear it to head higher. And watch to see if the GLD breaks under 137.50.

A break under the major 137.50 level and it should head lower.

Technical resistance is at 138.30.

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

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 59.72. The XLE closed back above the major 59.38 level.

At this point, the minor 60.16 level is the key level on the upside. Two closes above this level and it should head up to 62.50.

59.38 should be support.

The daily chart is getting close to crossing into an uptrend.

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 270.71. Apple closed above the 269.54 level. This now suggests that if Apple closes above 269.54 today, it should move up to 281.

Minor support is at 269.54.

Technical support should now be in the 264 area.

WATCH LIST:

Bullish Stocks: CMG, SHOP, HUM, MLM, ZBRA, VRTX, BABA, CME, AMP, MSFT, HSY, UHS, KMB, ALNY, RCL, DRI, EA

Bearish Stocks: FDX, AAP, FFIV, XLNX, PLCE, CXS, SAGE, ALB, OLLI

Be sure to check earnings release dates.