February 19, 2020 - 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 $1.06

UNIT Long at $6.78
UNIT Short Feb 21st Call @ $0.30

IRBT Long (2) Feb 28th - $52.50 calls @ $2.40
IRBT Long (1) Feb 28th - $52.50 put @ $2.50

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Once again, it appeared that the day could be the start of a deep pullback to only to see the market shrug off negative news and see buying come in.

This only shows you how strong this market is.

The S & P opened with a bearish gap of 11.12 points. The market opened at 3,369.04, or 11.14 points below Friday's close. From there, it dropped too a low of 3,355.61.

From that point, the market moved up 19.40 points to a high of 3,375.01, before selling off to settle at 3,370.29.

The intraday pattern is one I will show on today's webinar. It is a technical set up that is very reliable and effective. You will find it informative.

So, for the day, the market managed to close above its open and form another doji bar.

And the day closed out at 76% of the range of the daily bar.

This suggests that support should be at 3,365.

Pre open, the S & P is trading about 9 points higher.

Assuming this trading holds up through the open, the market should open about 4 points above yesterday's high.

This would suggest that yesterday's high should be support. And the close of 3,370.29 should also be a support level.

Today at 2:00, we get the FOMC minutes.

Support from last week's weekly price bar will be in the 3,349 to 3,351 area.

WMT reported and closed 1.74 points higher.

Thursday before the open, we hear from DPZ and Friday morning, we get DE.

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 at 14.83 yesterday. The VIX did take out the 14.85 level, but it closed two cents under it. As I mentioned yesterday, it should be resistance.

I still expect a test of 12.50. And 14.85 should still be resistance.

Watch the 14.30 level. A break under this level and it should head lower.

S & P 500:

Major level: 3,427.40 <
Minor level: 3,398.35
Minor level: 3,320.25 **
Major level: 3,281.20
Minor level: 3,242.15
Minor level: 3,164.08
Major level: 3,125.00
Minor level: 3,085.95
Minor level: 3,007.85
Major level: 2,968.80

The S & P closed at 3,370.29. Watch the minor 3,378 resistance level again. The market should open just above it. Watch to see if this level can hold.

The 3,363 area should offer technical support.

Short term charts remain bullish, so momentum is still to the upside.

QQQ:

Major level: 237.50
Minor level: 236.73
Minor level: 235.16 **
Major level: 234.38 <
Minor level: 233.60
Minor level: 232.03
Major level: 231.25
Minor level: 230.48
Minor level: 228.91
Major level: 228.13
Minor level: 227.35
Minor level: 225.78
Major level: 225.00

The QQQ closed at 234.73. The QQQ dropped below the major 234.38, but managed to close above it.

The QQQ will need to have two closes above 235.16 to move up to 237.50.

And the upper band is 232.06 and the QQQ is still trading above it. Remember, it is support until it is violated. It continues to be the strongest market.

The 233 are should still provide technical support.

IWM:

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
Minor level: 151.56
Major level: 150.00

The IWM closed at 167.54. It will need to clear the 168.75 level, to move higher.
The IWM still has not crossed into an uptrend on its 60 minute chart, but it is close. If it does cross up, the price should continue higher. 166 is the midband on the 60 minute and it should be support.

The 166 level should offer support.

TLT:

Major level: 146.88
Minor level: 146.10
Minor level: 144.53 **
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

The TLT closed at 145.54. This was the second close above 144.53. This now suggests the TLT should move up to 146.88.

Watch the 144 area. By clearing this level, it should be support as well. And it should offer technical support.

GLD:

Major level: 153.13
Minor level: 152.35
Minor level: 150.78 **
Major level: 150.00
Minor level: 149.22
Minor level: 147.67
Major level: 146.89
Minor level: 146.11
Minor level: 144.54
Major level: 143.75
Minor level: 142.97
Minor level: 141.41
Major level: 140.63

The GLD closed at 150.91. The GLD took out the 150 objective, and closed above the next minor level. A close today above 150.78 and the GLD should test 153.

149.22 should be a support level. And the 148.50 area should now be technical support. A break under it and the GLD should head lower.

Momentum remains bullish.

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: 55.47
Minor level: 53.90 **
Major level: 53.12 <
Minor level: 52.34
Minor level: 50.78
Major level: 50.00

The XLE closed at 54.13. Minor support should still be at 53.90. And look for a move up to the 56 area. A break under 53.90 and the XLE should head lower.

The XLE did break under 53.90, but it managed to hold.

53.78 is a key support level. If this can hold, look for the XLE to continue to bounce. If it can't, look for a further drop.

Watch the 54.30 area. If the XLE can clear this level, it should head higher.

AAPL:

Major level: 337.50
Minor level: 334.38
Minor level: 328.13
Major level: 325.00 <
Minor level: 321.88 **
Minor level: 315.63
Major level: 312.50
Minor level: 309.38
Minor level: 303.13
Major level: 300.00
Minor level: 296.88
Minor level: 290.63
Major level: 287.50
Minor level: 284.38

Apple closed at 319.00. This was the first close under the minor 321.88 level. A close today under this level and Apple should drop to 312.50.

The upper band is 341 and is the level to watch on the upside.

The 314 area should offer technical support on a pullback.

WATCH LIST:

Bullish Stocks: AMZN, GOOLG, TSLA, MELI, SHOP, REGN, ADBE, NOW, NTES, LRCX, MA, COST, INTU, NVDA, DXCM, APD, HD, RNG

Bearish Stocks: WAT, EEFT, W, CXO, CHRW, RPD, LNG, NTAP, CSCO, HLF, XEC, RAMP, SINA