July 21, 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

VIPS Long at $11.96
VIPS Short July 28th $12 Call at $.30

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I do need to mentioned that we have one position that expires today. That is the short $20 call on SBH. SBH closed yesterday at $19.88, just under the strike price.

Hold the calls through today's close. If an adjustment is required, you will receive an separate email.

After inching up towards out next objective, which is 2,500, the S & P 500 stalled out yesterday and had a narrow range day.

The range for the day was only 9.19 points. With an average true range of 14.28, you can see that yesterday's price action contracted once again.

And yesterday formed a doji candle as well. As you know, this can mean indecision. Or it can be a pause before the move begins again.

Last week's high was 2,463.54, so I would expect that to be strong support. At least I would expect a close this week above that level.

We also had a divergence in the S & P 500 and the VIX. They both closed to the downside.

As the market is now within 23 points of the 2,500 objective, the question is do we get a small pause before it moves up to the target or do we spike up and hit it?

Yesterday's low in the VIX was 9.50, just 12 cents from the 9.38 objective.

I would still expect upside levels in the VIX to act as resistance. And with both the short term 30 minute and 60 minute charts for the S & P 500 in uptrends, I would expect a rally if the market does pullback.

Pre open, the S & P 500 is trading with a slight bearish bias.

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

9.38 is the key level for the VIX. Watch to see if it holds. Or does the VIX finally break under this level?

On the upside, 10.16 and 10.55 should stil be resistance. 8.98 should be 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

2,468.80 should now be support. Getting a bit overbought short term. On the upside, 2,484.40 should be resistance. If the S & P breaks through this level, it paves the way for the move to 2,500.

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 at 144.17, just above the 143.75 level. The QQQ needs to clear 144.53 to head higher.

143.75 should be support.

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

The IWM is now within 25 cents of the 143.75 objective.

142.58 should offer strong support. On the upside, resistance could be at 144.53.

TLT:

Minor level: 125.39
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 hit a high of 125.78, before selling off to close at 125.16.

125 should offer support abd 125.78 is resistance.

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

The GLD hit a high of 118.62, just 13 cents under the 118.75 objective.

117.97 should offer minor support and 119.53 should be 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 66.57 before pulling back to close at 65.76.

It will still need two closes above 66.41 to head higher. Watch to see if it can clear this level.

65.63 should offer support.

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 pulled back and closed at 85.95, just one cent above the major level.

Watch to see if the FXY breaks under the 85.94 level. If it does, it could drop to 81.

AAPL:

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

Apple closed under 150.78, so it did not confirm the move up to 153.13.

150 is support. And I would not expect Apple to drop below 146.88.

Short term momentum is shifting to the upside. The 60 minute chart is close to moving into an uptrend.

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