February 25, 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

RRC Long at $11.85
Total Premium Collected $0.70

RIG Long at $8.81
Premium Collected - $0.46
Short March 1st-$9 Call @ $0.20

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Friday you should have been assigned on the $12 calls on the VALE position, assuming you followed the alert.

The return worked out to be 3.8% for 10 days. The cash return, assuming you traded the suggested 600-share lot, worked out to $270.

Friday, the S & P 500 closed at 2,792.67, up 17.79 points on the day.

The range for the day was only 15.09 points. This was slightly more than 50% of the average true range, which is 28.87 points.

Friday's close put the market right at the minor 2,792.98 level. The high actually took it out by almost 2 points.

This puts the market within 20 points of the 2,812.50 objective we are looking for.

And the close percentage for the day worked out to 90%. This gives us a 90% chance that Friday's high will be violated before the low.

And pre open, the S & P 500 is trading about 12 points higher. Assuming this trading holds into the open, the open projects at around 2,805 or about 10 points above Friday's high of 2,794.20.

This also projects the open to within 18 points of the next upside objective.

Scaling back to the weekly price bar, the weekly bar closed 17.07 points higher. And it did manage to close above the prior week's high of 2,775.66.

And for the week, the S & P 500 closed at 94.8% of the weekly bar. This puts the odds of violating last week's high of 2,794.20 at around 95% before it violates the low of 2,764.55.

And with the strong trading before the open, the high should be taken out at the open.

The weekly support level is in the 2,780 area. And the daily support is in the 2,787 area.

Earnings do continue this week.

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 13.51 yesterday. It was down 6.57% on the day. And it puts the VIX within one point of the 12.50 objective.

Resistance should now be at 14.06. And a break under 13.28 and the VIX should continue lower.

Minor resistance is also at 13.87.

SPX:

Major level: 2,890.60
Minor level: 2,871.08
Minor level: 2,832.03
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

With a projected open above the minor 2,797.90 level, I would expect this level to offer support on a pullback.

Active objective remains to 2,812.50.

The market has now moved almost 450 points in about two months. As long as the market keeps hitting its upside targets, you know to respect this bull move.

Technical support is around 2,781.

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 172.89 yesterday. The upside objective is still to 175.

171.88 is minor support. Look for the QQQ to clear 173.44 and head higher. And 172 is technical support, so this area should offer strong support on a pullback.

IWM:

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
Minor level: 148.44

The IWM closed at 158.15. Friday was the first close above 157.81, so if the IWM closes above 157.81 today, it should move up to 162.50.

159.38 is minor resistance. A break above this level and the IWM should continue higher.

156.25 should be strong support on a pullback.

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 121.57. If the TLT can clear 121.88, I would expect it to head higher. But, it is still resistance until it is cleared.

Support should be at 121.09.

Technical support is in the 121 area as well.

GLD:

Major level: 128.13 ***
Minor level: 127.74
Minor level: 126.95
Major level: 126.56 <
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
Major level: 121.88
Minor level: 121.10
Minor level: 119.53

The GLD jumped and closed at 125.50. The major 126.56 level should offer resistance.

And at this point, 125 should be support. A break under 125 and I would expect the GLD to head lower.

The 123 to 124 area should offer technical support.

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 65.76. The XLE did manage to recoup the 65.63 level. Look for support here.

62.50 should offer major support. Technical support is around the 64 to 66 area. Short term charts remain bullish.

67.19 is minor resistance, so if the XLE can clear this level, I would expect it to move higher.

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 86.24. The midband is now 86.69. The midband should still be resistance.

And 86.72 should offer resistance.

Short term charts remain bearish. And the daily chart is also bearish. This would suggest resistance at the 86.69 level.

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

Predicted High: 178.09
Predicted Low: 167.85

Apple closed yesterday at 172.97. Still expecting a move up to 175 and Apple is within 3 points of it.

171.88 should offer strong support. And technical support is right around 171.70.

Biased for a move up. Continuing to look for an entry.

WATCH LIST:

Bullish Stocks: ULTA, COST, ZBRA, WDAY, VRSN, CMI, CRM, V, OLED, CRL, CHKP, KMB, DATA, DIS, HSY, PYPL, UAL

Bearish Stocks: NTES, AGN, ALNY, GDOT, KSS, XPO, URBN

Be sure to check earnings release dates.