February 14, 2019 - MDT Pro Tips A.M.

CURRENT POSITIONS:

GOGO Long at $19.93
Total Premium Collected $1.95
 
ASNALong at $14.20
Total Premium Collected $0.75

DUST Long $4.50
Total Premium Collected $0.70

SNAP Long at $14.54
Total Premium Collected - $1.65

OI Long Feb $19 call @ $1.70

RRC Long at $11.85
Total Premium Collected $0.70

RIG Long at $8.81
Premium Collected - $0.26
RIG Short Feb 15th - $9 Call @ $0.26

NLS Long at $7.66

VALE Long at $11.85
Premium Collected - $0.30
VALE Short Feb 22nd - $12 Call @ $0.30
.........................................................................................

For tomorrow, we have a few positions that expire if you followed the alerts. The most sensitive are the long calls on OI. The calls are in the money, so I will be sending an alert.

The S & P 500 continued to drift higher after closing above the midband on its daily chart.

The midband is now 2,731.94 and yesterday, the S & P 500 closed at 2,753.03. It was up 8.30 points on the day.

And for the second consecutive day, the market opened with a bullish gap above the prior day close and high.

The close was just 90 cents under the next upside confirming level.

Two closes above 2,785.93 would indicate that the S & P 500 should head up to 2,812.50.

Perhaps today we will get the first close above it. Pre open, the S & P 500 is trading about 3 points higher.

If this holds up until the open, this will be the third consecutive bullish gap.

The open would gap above yesterday's close, but not above yesterday's high.

The support area from yesterday's daily bar is in the 2,751 to 2,755 area.

The range is contracting, which is bearish. Yesterday's range was only 13.22 points as compared with the 32.96 points average true range.

In taking a quick look at how this week's weekly price bar is forming, the key is that we have closed above the high from last week.

Last week's high is 2,738.98 and I would expect that level to offer support if the market does pullback. And the midpoint of this week's bar so far is 2,732.82, which is within 6 points of it.

On yesterday's webinar, I discussed how to find high yielding stocks that are oversold. The recording, along with the handouts, can be downloaded from the members' area.

Earnings do continue this week. One of the most closely watched companies will be NVDA, which reports this afternoon, after the close.

Also reporting after the close are BIDU and AMAT.

Here are the Key Levels for the Markets:

$VIX:

Minor level: 22.66
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

The VIX closed at 15.63. At least that was the print yesterday right after the close. This morning, I am seeing a print of 15.65.

This is right at the major 15.63 level.

16.02 should be minor resistance. And on the downside, watch to see if the VIX can break under 15.23.

SPX:

Major level: 2,812.50
Minor level: 2,792.98
Minor level: 2,753.93 **
Major level: 2,734.40 <
Minor level: 2,714.88 **
Minor level: 2,675.83
Major level: 2,656.30
Minor level: 2,636.75
Minor level: 2,597.65
Major level: 2,578.10

2,744.10 level should continue to offer minor support. And there is minor support at 2,749.

As I said, the next minor level on the upside is 2,753.93.

Two closes above 2,753.93 and the objective should be 2,812.50.

QQQ:

Major level: 175.00
Minor level: 173.44
Minor level: 170.31 **
Major level: 168.75 <
Minor level: 167.19
Minor level: 164.06
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25
Minor level: 154.69

The QQQ closed at 171.01 yesterday. The upside objective is now 175.

The midband is now 169.44. It should offer support.

173.44 is minor resistance. A break above it and the QQQ should continue higher.

170.31 should be support.

IWM:

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
Minor level: 142.19
Minor level: 139.06
Major level: 137.50
Minor level: 135.94
Minor level: 132.81

The IWM closed at 153.42. The IWM should test 156.25.

The IWM is inching closer to the midband which is 156.02.

153.13 should be strong support.

TLT:

Major level: 123.44
Minor level: 123.05
Minor level: 122.27
Major level: 121.88 <
Minor level: 121.49 **
Minor level: 120.70
Major level: 120.31 <
Minor level: 119.92
Minor level: 118.14
Major level: 118.75

The TLT closed at 121.10. This was the first close under 121.49. This now implies that if the TLT closes under 121.49 today, it should test 120.31.

120.70 is a short term support level.

Watch for technical support around 121. A break under this area and the TLT should drop.

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: 117.97
Minor level: 116.41
Major level: 115.63

The GLD closed at 123.37. Look for resistance at 124.22. And the objective now should be to a test of 121.88.

122.66 is still minor support on the downside. And 125.78 is resistance on the upside.

Short term charts are moving towards a downtrend.

XLE:

Major level: 71.88
Minor level: 71.10
Minor level: 69.53
Major level: 68.75
Minor level: 67.97
Minor level: 66.41
Major level: 65.63 <
Minor level: 64.85 <
Minor level: 63.28 **
Major level: 62.50
Minor level: 61.72
Minor level: 60.16
Major level: 59.38

The XLE closed at 64.84, one cent under the minor 64.85 level. The XLE should head up to 65.63.

64.45 should offer support. Technical support is around 64.

FXY:

Major level: 89.84
Minor level: 89.65
Minor level: 89.26
Major level: 89.06
Minor level: 88.87
Minor level: 88.48 **
Major level: 88.28
Major level: 87.50 <
Major level: 86.72
Major level: 85.94
Minor level: 85.75
Minor level: 85.36
Major level: 85.16
Minor level: 84.97

The FXY closed at 85.95. The FXY is starting to drop from the midband. But, that is what we expected after it closed under it.

Short term support is at 85.55. A break under this level and the FXY should continue lower.

Short term charts remain bearish.

AAPL:

Major level: 187.50
Minor level: 184.38
Minor level: 178.13
Major level: 175.00
Minor level: 173.44
Minor level: 170.31 **
Major level: 168.75 <
Minor level: 167.19
Minor level: 164.06
Major level: 162.50
Minor level: 159.38
Minor level: 153.13
Major level: 150.00

Apple closed yesterday at 170.18. Apple will still need two closes above 170.31 to suggest a move up to 175.

168.75 should be strong support.

Biased for a move up. Still looking for an entry.

WATCH LIST:

Bullish Stocks: CMG, AVGO, WDAY, ZBRA, VRSN, EW, ADP, ADSK, DECK, V, EXPE, VRSK, DG, CHKP, AXP, IRBT

Bearish Stocks: TTWO, ABBV, SNE, BABY, ERJ

Be sure to check earnings release dates.