July 18, 2017 - 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

DYN Long at $12.55
Premium Collected $0.48

APA Long Oct $47.50 Call at $3.45
APA Short Oct $52.50 Call at $1.10

SBH Long at $19.20
SBH Short July $20 Call at $0.30

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After the strong day on Friday, the market was back to a narrow range day. But, this seems to be how this market moves.

Large, quick spikes, followed by narrow range trading days.

And yesterday was an inside day as well. This suggests we will see more expanded days.

And for you, as a reader of this update, know that yesterday's close was quite important. It was the second day that the S & P 500 closed above 2,453.12.

This now implies that the upside objective for the S & P 500 is 2,500.

And with the short term 30 minute chart firmly in an uptrend, the momentum has clearly shifted to the upside. However, at this point, the 60 minute chart is still in a downtrend, but it is very close to crossing back into an uptrend.

I would suspect that after the 60 minute crosses into an uptrend, this will certainly help to confirm that 2,500 is within reach.

Again, the mantra is don't be tempted to short this market, but this has been the rallying cry for quite some time now.

NFLX reported last night and is trading about $15 to upside pre open.

Earnings will be closely scrutinized this quarter to see if the lofty price levels for this market are warranted.

Pre open, the market is trading slightly to the downside.

Continue to follow the resistance levels.

Here are the Key Levels for the Markets:

$VIX:

Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.84
Minor level: 13.28
Major level: 12.50
Minor level: 11.72 <
Minor level: 10.15
Major level: 9.38

Like the S & P 500, the VIX had a narrow range, inside day yesterday. It closed at 9.82.

9.38 should be support and minor resistance should be at 10.55. If the VIX opens above 9.77, look for it to act as support.

$SPX:

Major level: 2,500.00
Minor level: 2,484.38
Minor level: 2,453.12 <
Major level: 2,437.50 **
Minor level: 2,421.88
Minor level: 2,390.62
Major level: 2,375.00
Minor level: 2,359.38
Minor level: 2,328.12
Major level: 2,312.50

2,500 should be the objective. On a pullback, I would expect 2,453.12 and 2,445.30 to offer support.

2,468.80 could still offer resistance.

QQQ:

Major level: 143.75
Minor level: 142.18 <
Minor level: 139.06 ***
Major level: 137.50
Minor level: 135.94
Minor level: 132.81
Major level: 131.25

The QQQ closed one cent above the minor 142.18 level. The 143.75 level is the objective. Minor support is at 141.41.

142.97 is minor resistance. If this level is cleared, look for 143.75 to be hit.

Minor support is at 141.80.

IWM:

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: 136.72
Minor level: 135.16

143.75 should still be the objective. The IWM closed at 142.06.

141.60 should be support and 142.58 could offer resistance.

TLT:

Major level: 125.00
Minor level: 124.61
Minor level: 123.83
Major level: 123.44 <<
Minor level: 123.03
Minor level: 122.21
Major level: 121.88

The TLT closed above 123.44 yesterday. Watch the minor 122.83 level. It should offer resistance.

124.02 is minor resistance. And 123.24 is minor support.

GLD:

Minor level: 122.66
Major level: 121.88
Minor level: 120.32
Minor level: 119.53
Major level: 118.75
Minor level: 117.97
Minor level: 116.41 **
Major level: 115.63 <<
Minor level: 114.85
Minor level: 113.28

118.75 should be tested. Minor resistance is now at 117.97. 116.41 should now offer support.

I would still expect that 118.75 should be major resistance.

XLE:

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

The XLE hit a high of 65.76 yesterday. The objective was exceeded by 13 cents.

Shorter term timeframes have moved into uptrends, so short term momentum has shifted to the upside.

To move up to tne next level, the XLE needs two closes above 66.41.

FXY:

Minor level: 87.89
Major level: 87.50
Minor level: 87.11
Minor level: 86.33
Major level: 85.94 <
Minor level: 85.55
Minor level: 84.77
Major level: 84.38
Minor level: 83.60
Minor level: 83.20
Major level: 82.81

The FXY is close to the 85.94 level. I would expect this level to be strong resistance. Watch to see if if fails here. Same as yesterday.

85.74 is minor resistance. And 85.35 should be minor support.

AAPL:

Major levels for Apple are 153.13, 150, 146.88 143.75, and 140.63.

Apple hit the 150 objective. 151.56 should be minor resistance. And expect 148.44 to offer support on the downside.

Short term momentum is shifting to the upside.

WATCH LIST:

Bullish Stocks: PCLN, LMT, NOC, HUM, GS< FDX, BDX, BA, STZ, AMGN, RTN, LLL, RTN, CMI, FB, AET, RHT, WDC, SMG, KSU, AXP, DD

Bearish Stocks: JACK, PAYX, ROST, SIMO, EAT, BGS, RBA, SCG

Be sure to check earnings release dates.