July 26, 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

VIPS Long at $11.96
VIPS Short July 28th $12 Call at $0.30

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The VIX managed to close exactly where it did on Monday, which was 9.43.

After opening under 9.38, it dropped to a low of 9.05 before it managed to rally to 9.52 before settling once again, at 9.43.

The longer that the VIX holds this level, without confirming to the downside, suggests that the VIX should bounce. The question is this ... will we see two closes under 9.38?

And now that the VIX has moved into downtrends on both its 30 minute and 60 minute short term charts, a move the downside would not be out of the question. The question is whether it can close under the key level of 9.38 for two straight days.

And with the S & P 500 still inching towards its objective of 2,500, it does suggest more downside for the VIX.

Earnings season is now in full swing. Yesterday saw some strong moves. FCX jumped $1.91 or 14.77%. This is a stock that I have mentioned I like because of the fact that copper seemed to have held long term support and began moving up.

But FCX was not the only large move yesterday.

STX dropped $6.56 or 16.5%. And ATI was up $1.97 or 11.49%.

GOOGL dropped $29.28. However, on a percentage basis it was only 2.93%.

After the close today, we will hear from Facebook.

Pre open, the market is set to open to the upside. Continue to monitor the 9.38 level on the VIX.

The Fed does release their interest rate decision today at 2:00 EST.

Continue to follow the resistance levels.

Here are the Key Levels for the Markets:

$VIX:

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 <
Minor level: 8.60 **
Minor level: 7.03
Major level: 6.25

I know it may seem like I sound like a broken record when I mention the 9.38 level on the VIX, but it is a historic level. Sounds like my pleadings not to short this market.

But, I feel how the VIX trades now will tell us a lot about what the market will do in the immediate future. It is that important.

With the market set to open higher, I would expect an open under 9.38. This would mean 9.38 should be resistance.

9.77 is minor resistance and 9.18 should be minor 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

Yesterday's high was 2,481.24, within 20 points of the objective.

2,500 is still the active objective. 2,476.60 should offer minor support.

QQQ:

Major level: 150.00
Minor level: 148.44
Minor level: 145.31 ***
Major level: 143.75 <
Minor level: 142.18
Minor level: 139.06
Major level: 137.50
Minor level: 135.94
Minor level: 132.81

To move higher, the QQQ will need two closes above 145.31.

The QQQ closed just above the 144.34 support level. 144.92 should be resistance.

IWM:

Major level: 146.88
Minor level: 146.09
Minor level: 144.53
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 IWM took out the 143.75 objective, closing at 144.05.

144.53 should be minor resistance. And 143.36 should be support.

TLT:

Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00 <<
Minor level: 124.61 **
Minor level: 123.83
Major level: 123.44
Minor level: 123.03

The TLT dropped under 124.61, almost hit the 123.44 level. It closed at 123.57.

122.66 should be support. And resistance is now at 125.

GLD:

Major level: 125.00
Minor level: 124.22
Minor level: 122.66
Major level: 121.88
Minor level: 120.32
Minor level: 119.53 **
Major level: 118.75 <<
Minor level: 117.97

The GLD closed at 118.92. 118.75 should be support, so a break under this level would indicate lower lows for the GLD.

120.31 should offer minor resistance and 118.75 should be support.

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 did close above the 65.63 level. At this point, 64.85 should be support.

And to move higher, the XLE will need 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

87.50 once again offered resistance and the FXY sold off and closed at 85.94.

It closed right on the major level. A break under 85.94 would indicate further downside on the FXY.

AAPL:

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

Apple did hit the 153.13 level. Minor resistance is at 154.69. And support is at 151.56.

Short term momentum is shifting to the upside. The 60 minute chart just moved into an uptrend. Buying against short support should be the strategy at this point.

WATCH LIST:

Bullish Stocks: AMZN, AVGO, BA, BDX, BIDU, NFLX, CELG, MA, UHS, LLY, CTXS, RH, CCL, KMX, RAX, NKE, EXPD, KEYS

Bearish Stocks: IBM, GPC, CVS, DXCM, HOG, SIMO, DKS, EAT, GME

Be sure to check earnings release dates.