July 29, 2019 - MDT Pro Tips A.M.

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

RRC Long at $11.85
Total Premium Collected $0.70

RRC Long at $9.20

RIG Long at $8.81
Premium Collected - $1.45

FEYE Long at $17.18
Total Premium Collected $0.80

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I suggested you allow the short $14.50 call on SNAP be assigned on Friday. Your shares should automatically be sold at $14.50.

The end result, if you followed all the alerts on SNAP, is a return of about 24%. I will look to put this position back on an oversold condition.

Now onto the markets.

The S & P 500 pushed higher on Friday. It ended the day closing at 3,025.86. It closed 22.19 points higher on the day.

And for the day, the S & P closed at 86% of the daily bar. This does suggest that Friday's high of 3,027.98 should be violated before the low of 3,012.59.

It turned out that the weekly price bar closed 49.25 points higher. It completely reversed the 1.23% sell-off from the prior week.

And the weekly price bar closed at 95.9% of the range of the bar. This also helps to confirm that last week's high will be violated before the low.

The support area from last week's weekly price bar is in the 3,002 to 3,004 area.

And the support area from Friday's daily bar is in the 3,020 area.

Short term intra day charts remain firmly bullish, which suggests that buying against support is the best strategy.

The S & P is trading skightly higher before the open. As you know, bias is still to the upside.

Earnings do continue this week. Tomorrow after the close, we will get earnings from Apple.

Wednesday, after the close, we will hear from STMP and WDC. And we also get earnings from LRCX.

The big market wide news announcement this week will be the Feds interest rate decision this Wednesday, at 2:00 EST. It is anticipated that a 1/4 point reduction will be announced.

Here are the Key Levels for the Markets:

$VIX:

Major level: 21.88
Minor level: 21.10
Minor level: 19.53
Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.85 **
Minor level: 13.28
Major level: 12.50 <
Minor level: 11.72

The VIX closed at 12.18 on Friday. The VIX dropped back under the major 12.50 level.

12.89 should now offer short term resistance. And 13.28 as well.

Watch to see if he VIX breaks under 12.11. If it does, it should head lower.

SPX:

Minor level: 3,164.08
Major level: 3,125.00 <
Minor level: 3,085.95
Minor level: 3,007.85 ***
Major level: 2,968.80
Minor level: 2,929.73 **
Minor level: 2,851.58
Major level: 2,812.50
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30

If the S & P can close above 3,023.70 today, I would expect a move up to 3,042. Ths would be the short term objective.

3,015.10 should offer support. And the 3,020 area should provide technical support.

Longer term, a close above 3,007.85 today suggests a move up to 3,125.

QQQ:

Major level: 196.88
Minor level: 196.10
Minor level: 194.53 **
Major level: 193.75 <
Minor level: 192.19
Minor level: 189.06
Major level: 187.50
Minor level: 185.94
Minor level: 182.81
Major level: 181.25
Minor level: 179.69

The QQQ closed at 195.29. This now suggests that if the QQQ closes above 194.53 today, it should move up to 196.88.

194.53 is a minor support level. And yesterday's low stopped 10 cents under it. Look for this level to continue to be support. But, a break under it would suggest the QQQ should head lower.

193.75 should now offer strong support.

IWM:

Major level: 162.50
Minor level: 160.94
Minor level: 157.81 **
Major level: 156.25 <
Minor level: 154.69 **
Minor level: 151.56
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75

The IWM closed at 157.20. I still expect the high from Wednesday's daily price bar of 157.45 will be violated.

And the IWM is still above the midband, which is 153.85. This level should continue to be support at this point. So, a violation to the downside would suggest more selling pressure.

156.25 should be support. The IWM is close to crossing into an uptrend on its daily chart.

TLT:

Major level: 134.38
Minor level: 133.60
Minor level: 132.03
Major level: 131.25
Minor level: 130.47 **
Minor level: 128.91
Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00

The TLT closed at 131.47. To head lower, the TLT will need two closes under 130.47. And to move higher, two closes above 132.03.

131.25 should be support. And if the TLT can clear 132.25, it should continue higher.

GLD:

Major level: 137.50
Minor level: 136.72
Minor level: 135.16 **
Major level: 134.48 <
Minor level: 133.60 **
Minor level: 132.03
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.74
Minor level: 126.95

The GLD closed at 133.64. The GLD will still need two closes under 133.60 to drop to 131.

134.38 should offer resistance. Watch the minor 133.59 level today. This should offer resistance as well.

XLE:

Major level: 65.63
Minor level: 64.85
Minor level: 63.28 **
Major level: 62.50 <
Minor level: 61.72
Minor level: 60.16
Major level: 59.38
Minor level: 58.60
Minor level: 57.03
Major level: 56.25

The XLE closed at 62.45. The XLE sold off 0.32 yesterday.

Short term oversold. If the XLE can get above 62.50, look for it to head higher. Getting close to crossing into an uptrend on the daily chart.

AAPL:

Major level: 212.50 <
Minor level: 209.38
Minor level: 203.13 **
Major level: 200.00 <
Minor level: 196.88
Minor level: 190.63
Major level: 187.50
Minor level: 184.38
Minor level: 178.13
Major level: 175.00

Apple closed at 207.74. The objective continues to be up to 212.50.

206.25 should offer support. So, if it is violated, it should head lower.

The 206 area should offer technical support.

Apple does report tomorrow.

WATCH LIST:

Bullish Stocks: CMG, SHOP, AVGO, MA, PANW, OLED, PANW, HD, LRCX, BABA, V, CMI, DE, CB, JPM

Bearish Stocks: ALGN, AMGN, IRBT, SFLY, XEC, CLR, NOAH, SFM, CADE

Be sure to check earnings release dates.