July 13, 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 $14.54
Premium Collected - $1.65

BERY Long Sept $50.00 Call at $2.70

OI Long Nov $17 Call for $1.25
OI Short Nov $20 Call for $0.35

DDD Long at $14.60
DDD Short July 13th-$15 Call at $0.25

VALE Long at $13.50
VALE Short July 27th-13.50 Call at $.21

.......................................................................................... 

You should have one position that expires today, assuming you followed the alert. And that is the short $15 call on DDD.  And with DDD closing at $15.76 yesterday, it is highly probably the options will be assigned today.

I also suggested another covered call position on VALE.  You should have bought VALE and sold the July 27th call.

Back to the markets.

The S & P 500 closed 24.27 points higher, closing at 2,798.29.  The range for the day was 17.69 points.  

And the 30 minute chart crossed into an uptrend yesterday.  And so did the 60 minute chart.

This tells us that there is more room on the upside.

For the week, so far, the midpoint is 2,783.51.  Yesterday's close was about 16 points above the midpoint.

The weekly range, so far, is only 30 points.  And with a weekly average true range of 63 points, the projected high for the week should be about 2,829.

I don't know if the market can hit that today, as that would take out the 2,812 objective. 

But, with the short term charts in uptrends, the best way to profit in this market is on the longside.

Support from yesterday's daily price bar is in the 2,790 area.

Pre market, the S & P 500 is trading relatively flat.

Continue to monitor the longer term levels for the market.

Here are the Key Levels for the Markets:

$VIX: 
 
Major level: 31.25
Minor level: 29.69
Minor level: 26.56
Major level: 25.00 
Minor level: 23.44 
Minor level: 20.31 
Major level: 18.75 <
Minor level: 17.19 
Minor level: 14.06 **
Major level: 12.50 <
Minor level: 10.94 

The VIX closed at 12.56.  The VIX could not clear 14.06, getting as high as 13.93 before it sold off back to the 12.50 level.

At this point, we need to be mindful that the VIX is back to the 12.50 level and could bounce again.

12.11 is a short term support level and if the VIX breaks under that level, it should head lower.

$SPX: 

Major level: 2,812.50 <
Minor level: 2,802.73
Minor level: 2,783.18 **
Major level: 2,773.40 <
Minor level: 2,763.65
Minor level: 2,744.15
Major level: 2,734.40 
Minor level: 2,724.63 
Minor level: 2,705.08
Major level: 2,695.30 
Minor level: 2,685.55 
Minor level: 2,666.05
Major level: 2,656.30

Minor support is at 2,788.10 and 2,775.90.

Objective should be back to 2,812.50

QQQ:  

Major level: 181.25 <
Minor level: 179.69
Minor level: 176.56 **
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 

The QQQ closed at 179.46.  The QQQ should be to the 181.25 level.

Both short term charts are now bullish.  

IWM:

Major level: 171.88
Minor level: 171.10
Minor level: 169.53 **
Major level: 168.75 < 
Minor level: 167.97 **
Minor level: 166.41 
Major level: 165.63 
Minor level: 164.85 
Minor level: 163.28 
Major level: 162.50 

The IWM closed at 167.92.  A retest of 168.75 is probable.

Both short term charts are on uptrends, so look to stay long.

167.19 should be short term support.

TLT:  

Major level: 125.00
Minor level: 124.61
Minor level: 123.83
Major level: 123.44 <
Minor level: 121.49 
Minor level: 120.70 **
Major level: 120.31 
Minor level: 119.92 
Minor level: 119.14 
Major level: 118.75 

The TLT closed at 122.41.  The objective for the TLT should still be up to 123.44.

122.27 should be minor support.  A break under this level and I would expect the TLT to continue lower.

GLD:  

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: 119.14 
Major level: 118.75
Minor level: 118.36 <
Minor level: 117.58 **
Major level: 117.19

The GLD closed at  118.13.  Objective should be to 117.19.

And a break under 117.97 would indicate the GLD will head lower.

With the daily chart just crossing into a downtrend, look to sell this rally when it fails.  

XLE: 

Major level: 78.13 <
Minor level: 77.35 
Minor level: 75.78 **
Major level: 75.00  
Minor level: 74.22 
Minor level: 72.66 
Major level: 71.88 
Minor level: 71.10
Minor level: 69.53
Major level: 68.75

The XLE closed at 75.86.  Short term support is at 75.39.  Look for a bounce back up to 78.13.

76.56 is minor resistance.  If the XLE can clear this level, it should head higher.

FXY:

Minor level: 87.31 
Minor level: 86.92 
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

The FXY closed at 85.06.   The took out the 85.16 objective.  
84.96 is a minor support level.  A break under this level the FXY should continue lower. 

AAPL:

Major level: 200.00
Minor level: 198.44
Minor level: 195.31
Major level: 193.75
Minor level: 192.19
Minor level: 189.06 **
Major level: 187.50 <
Minor level: 186.72
Minor level: 185.16 
Major level: 184.38 

Apple closed at 191.03.  189.84 should be minor support.

If Apple holds 189.84, look for it to continue higher. 

WATCH LIST:
Bullish Stocks: NFLX, BDX, FLT, FB, VMW, FANG, CNC, DPS, CTSH, NKE, AVAV, LW, APA, ETSY, PFE, SJM 

Bearish Stocks: SWK, WBC, NXPI, TSN, WRK, WRK, KMT, LM, BITA, RMBS

Be sure to check earnings release dates.