July 5, 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
BAC Long Nov $28 Call for $1.78
BAC Short Nov $31 Call for $0.62
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You should have booked the profit on the CB position on Tuesday, if you followed the alert. The markets are open again after the Holiday. I hope you enjoyed your 4th! In the shortened pre holiday trading on Tuesday, the S & P 500 gapped to the upside at the open and stalled at 2,736.58. After stalling out at the high, the S & P 500 sold off the balance of the day, to hit a low of 2,711.16 If rebounded slightly to close at 2,713.22. The sell off was not unexpected do to the fact that both the 30 minute and 60 minutes for the S & P are downtrending. I don't typically like to follow the intraday price action on a shortened trading day before a holiday. This is because you tend to get exaggerated moves. The range for Tuesday was 25.42 points. And this happened in only 3 1/2 hours. Monday the range was 28.31 points and that was for a full day of trading. With a close Tuesday under 2,724.63, a close today under that level would imply a drop to 2,695.30. However, pre open the S & P 500 is trading about 20 points higher. This would suggest an open around 2,733. This is just under the 2,734.40 level. Watch to see if the S & P 500 can clear this level. If it can, I would expect support there. With a projected open above 2,724.63, I would expect support at that level if the market does pullback. The projected open is right around the 2,730 to 2,732 area, which is a resistance level from last week's weekly price bar. Tomorrow at 8:30 EST, we will get the Non Farm Payroll figures. As you know, this type of report can produce excess volatility for the markets. 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 16.14. For the day, it was up .54 or 3.46%. At this point, I expect resistance at 17.19. And I do believe the target is back to 12.50. Watch the 15.63 level. An open under this level and is should be resistance. $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 The market is almost back to the 2,734.40 level. The next level on the upside is 2,744.15. Watch the minor 2,739.30 level. If the S & P can clear this level, I would expect it to act as support. 2,722.20 is also a minor level to watch. 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 170.80. The objective should still be up to 175. 171.48 should be minor support. And 171.88 should as well. 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 164.96. The IWM is just under the major 165.63 level. Watch to see if it clear this level. If it can take out 165.63, I would expect a move up to 168.75. 164.84 should be minor support. TLT: 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 Minor level: 118.36 Minor level: 117.58 Major level: 117.19 The TLT closed at 122.00. The objective for the TLT should be up to 123.44. 121.68 should be minor support. 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 118.65. If the GLD can clear the major 118.75 level, I would expect it to continue higher. 117.97 should be a minor support level. The GLD bounced from its oversold condition. The daily chart is very close to crossing into a downtrend. 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 75.29. The XLE will still need two closes above 75.78 to move higher. On the downside, two closes under 74.22 and the XLE should drop to 71.88. Support should be at 75.0. And the XLE needs to clear 75.39 to head higher. FXY: Minor level: 88.09 Minor level: 87.70 Major level: 87.50 Minor level: 87.31 Minor level: 86.92 Major level: 86.72 < Minor level: 86.53 ** Minor level: 86.14 Major level: 85.94 The FXY closed at 86.62. The objective is still down to 85.94. Watch to see if the FXY clears 86.72. If it does, it should head higher. The midband should still be resistance. The midband is 87. 86.82 is resistance. AAPL: Minor level: 188.28 Major level: 187.50 < Minor level: 186.72 Minor level: 185.16 Major level: 184.38 Minor level: 183.60 ** Minor level: 182.03 Major level: 181.25 Minor level: 179.69 Minor level: 176.56 Major level: 175.00 Apple closed at 183.92. Apple did take out the 187.50 level, before heading lower. We expected a pulback because the short term charts are bearish. 183.59 is minor support. And 189.06 is minor resistance. WATCH LIST: Bullish Stocks: BDX, SBAC, CTSH, NTAP, APC, EGN, AVAV, K, DRQ, APA, CRC, MDU, CIEN, TEVA, UNT, CNX Bearish Stocks: GD, GS, LRCX, ITW, CMI, WBC, UPS, LOGM, SWKS, SINA, WDC, XLNX, AAL Be sure to check earnings release dates.