January 13, 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
FEYE Short Jan 17th - $19 Call @ $0.26

DBX Long at $17.18
DBX Short Jan 31st-$17 call @ $0.70

X Long at $11.33

NET Long at $17.09
NET Short Jan 17th - $17.50 call @ $0.55

FDX Long Jan 17th - $150 Put for $3.05
FDX Short Jan 17th - $145 Put for $1.37

DG Long Jan 31st - $152.50 Call @ $2.90
DG Short Jan 31st - $155.00 Call @ $1.70
.................................................................................

The short $11.50 call on X did expire on Friday. The profit from selling the call is booked and I will look to sell another round of calls this week.

The market continues to climb to the 3,281.20 objective. The S & P 500 closed at 3,274.70 or within 7 points of the objective.

I suspect the big news for last week and Friday was the fact that the S & P 500 hit the target I have been calling for.

As you know, the price level was 3,281.20. On John's last webinar, I even reiterated that the target was 3,281.20.

Friday's high went to 3,282.99, taking out the objective by objective by 1.79 points.

Once the market hit the target, it sold off 17.64 points to close out the day at 3,265.35.

Hopefully, this information had been helpful to you. And if you have been reading this update for a while you know that when a move is confirmed, the objective typically gets hit.

Like the last objective of 3,281.20.

If you did not think the market would ultimately get to this level, please let me know.

Friday's daily bar ended up closing at only 20% of the bar, which does suggest that the low should be violated before the high.

But with the upside target getting hit, a retest of that level should be expected.

The support area from Friday's daily bar is in the 3,271 to 3,274 area.

Friday ended up closing 9.35 points to the downside. And pre open, the S & P is trading about 12 points higher. Assuming this trading holds up through the open, the market should open above the 3,274 area, which should then be support.

The weekly price bar closed 30.50 points higher.

The weekly price bar closed at 74.2% of the weekly price bar, which does suggest that the high should be violated before the low.

The range for the week was 68.35 points, which was greater than the weekly average true range of 61.94 points.

The support area from last week's weekly price bar should be in the 3,249 area.

The market does continue to be overbought, as well as the sentiment indicators. But, with the upside objectives continuing to get hit, we have to assume that upside momentum will continue.

The question is what area could we see a pullback?

There are two areas I am very mindful of. The first is the upper band on the daily chart, which is 3,313.

The other level to monitor would be the next upside level above 3,281.20, which is 3,320.25.

With this level close to the upper band, it should be a key area to watch for a possible sell off.

This week we begin earnings season.

We will get earnings from a number of major banks. Tomorrow morning, we will hear from JPM and WFC. And Wednesday afternoon, we get earnings from GS and BAC.

And Thursday morning, we get earnings from MS.

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 Friday at 12.54. Yesterday's low came to within 3 cents of the 12.50 target.

This is now at the long term major support level. Watch this level for support. If it does break under 12.50, watch the next minor level, which is 11.72.

13.28 should be resistance. 13.55 is technical resistance.

SPX:

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
Minor level: 2,929.73
Minor level: 2,851.58
Major level: 2,812.50

The S & P closed at 3,265.35. And the target was hit! At this point, watch to see if the S & P can clear the major 3,281.20 level.

Support should be at 3,203 if the market does pull back. And on the upside, watch the 3,300 level for possible resistance.

Technical support is still at 3,262.

QQQ:

Major level: 221.91
Minor level: 221.13
Minor level: 219.56 **
Major level: 218.78 HIT!
Minor level: 218.00
Minor level: 216.43
Major level: 215.65
Minor level: 214.87
Minor level: 213.30
Major level: 212.50
Minor level: 211.74
Minor level: 210.17
Major level: 209.39

The QQQ closed at 218.43. Watch to see QQQ can clear the major 218.78 level.

Support should now be at 218.00. And technical support is right around 218 as well.

The next minor level is 219.56. Two closes above that level and the QQQ should move to 221.91.

The upper band is 220.04. Watch to see if the QQQ can clear it.

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
Minor level: 145.31
Major level: 143.75

The IWM closed at 164.89. The objective for the IWM should be up to 168.75.

The 164.06 level should offer support.

And the 164 area should also offer technical support.

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 138.44. A close today above 138.28 and the TLT should test 140.63.

137.50 should now be support. And technical support should be at this level as well.

Short term charts remain bearish.

GLD:

Major level: 150.00
Minor level: 149.22
Minor level: 147.67 **
Major level: 146.89 Hit
Minor level: 146.11 **
Minor level: 144.54
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

The GLD closed at 146.91. At this point, I expect a move to retest the upper band on the daily chart, which is 149.

And if the GLD can close above 147.67 today, a move up to 150 should be expected.

The GLD did pull back from its overbought condition.

137.50 should be strong support. So if the GLD does break under it, I would expect it to head lower.

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 59.81. The objective should be up to 62.50. But, at this point, it will need to clear 60.16. And Friday, the XLE closed just below it.

Watch for support at the 59.38 level.

Technical support is still around 59.

AAPL:

Minor level: 315.63 **
Major level: 312.50 Hit
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
Minor level: 278.13
Major level: 275.00

Apple closed at 310.33. Apple hit the 312.50 objective Friday. The high for the day was 312.67.

The next minor level should be 315.63.

The upper band is 306.86 and should now be support.

312.50 should offer support.

The 309 area should offer technical support.

WATCH LIST:

Bullish Stocks: GOOGL, CHTR, LMT, ADBE, NTES, MA, AAPL, NVDA, GS, RTN, FB, LHX, CME, MCD, HD, COUP, MSFT, SPOT, SPLK, UHS, IBM

Bearish Stocks: AAP, FFIV, DLTR, TSCO, CTSH, DD, FIZZ, THS, RAMP, BERY, CIT, SIX

Be sure to check earnings release dates.