January 16, 2018 - MDT Pro Tips A.M.

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.

CURRENT POSITIONS:

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

SNAP Long at $15.20
Premium Collected - $3.55

AMC Long at $15.27
Short January $16 Call @ $0.27
Premium Collected - $2.25

UNIT Long at $17
Short January $17.50 Call @ $0.35

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The short the $15.50 call on SNAP expired on Friday. At this point, you should have collected almost 24% of the purchase price on SNAP from selling call options. On a bounce, I will suggest you sell more calls.

This Friday, there are two positions that expire. The short $16 call on AMC and the short $17.50 on UNIT.

Also, the 60 cent dividend on UNIT was paid on January 12th. Please let me know if you did receive it.

This week is a short week with the Holiday yesterday in the United States.

Last week, the S & P 500 continued it's torrid pace, closing 43.09 points to the upside. The market closed at 2,786.24.

The close came within 27 points of the 2,812.50 objective. At this point, 2,812.50 is the active objective.

Support from last week's weekly price bar should be in the 2,762 to 2,764 area.

And with a strong close on Friday, support from the last daily price bar should be in the 2,779 area.

Both short term 30 minute and 60 minute charts for the S & P 500 continue to remain in strong uptrends. This implies a rally should happen in the event that profit taking does set in.

Pre open, the S & P 500 is trading about 12.50 points to the upside. This would put the projected open around 2,798.

I do want to mention that the S & P 500 is trading above its upper bands on all long term timeframes. This includes the monthly, weekly and daily charts.

Here are the Key Levels for the Markets:

$VIX:

Major level: 14.06
Minor level: 13.67
Minor level: 12.89
Major level: 12.50
Minor level: 12.11
Minor level: 11.33
Major level: 10.94 **
Minor level: 10.55
Minor level: 10.16 <
Major level: 9.38
Minor level: 8.99
Minor level: 8.20
Major level: 7.81

The VIX closed at 10.16, right on the minor upside confirming level. Expect the VIX to drop back under the 10.16 level.

9.38 should offer support. And 10.55 should be resistance.

$SPX:

Major level: 2,812.50 <
Minor level: 2,792.98
Minor level: 2,753.93 **
Major level: 2,734.40
Minor level: 2,724.23
Minor level: 2,705.07
Major level: 2,695.30
Minor level: 2,685.55
Minor level: 2,666.05
Major level: 2,656.30
Minor level: 2,646.53

2,812.50 is now the active objective. Minor support is at 2,783.20 and 2,771.

If the S & P can clear 2,795.40, expect it to offer support.

QQQ:

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: 155.47
Minor level: 153.91

The QQQ closed at 164.49. A close today above 164.06 and the new objective becomes 168.75.

163.67 should be minor support for the QQQ.

IWM:

Major level: 159.38 <
Minor level: 158.60
Minor level: 157.03 **
Major level: 156.25
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
Minor level: 152.35
Minor level: 150.78
Major level: 150.00
Minor level: 149.22

The IWM closed at 158.16. The objective should be to 159.38.

156.26 should be strong support. And 157.81 is minor support.

TLT:

Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.35
Minor level: 125.78
Major level: 125.00
Minor level: 124.61
Minor level: 123.83 **
Major level: 123.44
Minor level: 123.05

The TLT closed at 124.52. A retest of 125 is likely. And 125 should be resistance, so watch to see if the TLT can clear this level.

Minor support should be at 123.83.

GLD:

Major level: 128.13
Minor level: 127.35
Minor level: 125.78 **
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: 117.96

The GLD closed at 126.96. A close today above 125.78 and the GLD should test 128.13.

126.56 should offer minor support.

XLE:

Major level: 78.13
Minor level: 77.74
Minor level: 76.95
Major level: 76.56 <
Minor level: 76.17
Minor level: 75.39
Major level: 75.00
Minor level: 74.61
Minor level: 73.83
Major level: 73.44
Minor level: 72.66

The XLE closed at 77.42. 78.13 should be the objective. And if the XLE can take out 78.13, it should head higher.

The XLE is above the upper band on the daily chart, so it is overbought short term.

FXY:

Major level: 86.72 <
Minor level: 86.53
Minor level: 86.14 **
Major level: 85.94
Minor level: 85.75
Minor level: 85.36
Major level: 85.16
Minor level: 84.96
Minor level: 84.55
Major level: 84.38

The FXY closed at 86.42. The objective for the FXY should be to 86.72.

85.94 should continue to offer strong support. And minor support is at 86.33.

AAPL:

Major levels for Apple are 175, 171.88, 168.75, 165.63, 162.50, and 159.38.

Apple closed at 177.09, closing back above the 175 level.

A close today above 175.78 and Apple should test 178.13. 176.56 should offer support.

WATCH LIST:

Bullish Stocks: AMZN, GOOGL, SHW, TSLA, BA, NOC, SPY, FDX, FLT, RTN, AMGN, CMI, AAPL, EOG, JPM, WDAY

Bearish Stocks: SLG, KMB, KHC, EPR, NGG, JACK, O, NUVA

Be sure to check earnings release dates.