July 9, 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

DDD Long at $14.60
DDD Short July 13th-$15 Call at $0.25
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Friday, I suggested a weekly covered call on DDD. If you followed the alert, you would have bought the stock and sold the $15 call that expires this coming Friday.

The market opened relatively flat on Friday and managed to close 23.21 points to the upside. The S & P 500 closed at 2,759.82.

The market managed to recoup the major 2,734.40 and close above the next upside level, which is 2,744.15. The market actually closed about 15 points above the next upside level.

This now implies that if the S & P 500 can close above 2,744.15 today, it should move up to 2,773.40.

Also, I would now expect support at 2,744 if the market does pullback.

Support from Friday's daily price bar is in the 2,744 to 2,749 area.

For the week, the S & P 500 closed 41.45 points to the upside. This was a strong reversal that reversed two consecutive bearish closes.

The weekly price bar also closed at 94% of the range of the price bar. This implies a violation of the high before the low. The high for the week was 2,764.41.

Pre open, the S & P 500 is trading about 10 points higher. This projects to an open around 2,770, which would take out last week's high.

Based on the projected open, look for support at last week's high.

The 2,732 area should be support based on last week's price bar.

The final comment for this morning is that both the 30 minute and 60 minute charts for the S & P 500 still remain in downtrends.

Though price is now trading above the midband on the 30 minute chart, which is 2,752.

If the 30 minute chart can cross into an uptrend, this would indicate that short term momentum has shifted to the upside and price should continue higher.

This Friday, before the open, we will get earnings from some of the major banks, including Citigroup, JP Morgan, Wells Fargo and PNC.

BAC reports July 16th, before the open.

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 13.35. It closed 1.62 points to the downside. At this point, I am still biased for a move down to 12.50. And the VIX is now back within 85 cents of the objective.

The high Friday, was 15.45, or within 20 cents of the 15.63 resistance level.

Watch for resistance at 14.84. Also, minor resistance should be at 14.06.

$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

A close today above 2,744.15 would indicate a test of 2,773. Minor support should be at 2,751.50 and 2,739.

A break above 2,763.70 and look for this level to be support and the market to continue higher.

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 175.61. The QQQ did take out the 175 objective we were looking for.

174.22 should be minor support and 176.56 could offer some resistance. If the QQQ takes out 176.56, it should continue higher.

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 168.25. The IWM is now back within 50 cents of the 168.75 objective.

167.97 could offer minor support. And minor support is at 167.19.

The 30 minute chart is close to moving into an uptrend. A bullish cross would indicate higher prices for the IWM.

TLT:

Major level: 125.00
Minor level: 124.61
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

The TLT closed at 122.75. The objective for the TLT should be up to 123.44.

121.49 and 120.70 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 118.86. 119.14 is a minor level on the upside. Two closes above 119.14 and the GLD should test 120.31.

117.19 should be a minor support level on the downside. A break under this level and it should head lower.

The daily chart just crossed into a downtrend. Profiting from the shortside will be the opportunity. Sell rallies.

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 75.67. 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.

The major 75 level should continue to offer support.

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 86.70. The objective is still down to 85.94. Watch to see if the FXY clears 86.72. If it does, it should head higher.

86.91 is resistance. Support is at 86.52.

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 187.97. Apple did expand Friday, after the narrow range day from Thursday. It was up $2.57 Friday.

189.06 is minor resistance. And minor support should be at 186.72 and 185.94.

WATCH LIST:

Bullish Stocks: NFLX, BDX, FLT, FB, VMW, FANG, CNC, DPS, CTSH, NKE, AVAV, LW, APA, ETSY, PFE, SJM

Bearish Stocks: SWK, WBC, NXPI, TSN, WRK, WRK, KMT, LM, BITA, RMBS

Be sure to check earnings release dates.