June 13, 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.

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GOGO Long at $19.93
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VRX Long at $13.69

APA Long Oct $47.50 Call at $3.45
APA Long Oct $45 Put at $2.75
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After the irrational move on Friday, the markets calmed down and took a breather yesterday.

The DOW & S & P 500 continued to have small sell offs and the NASD Composite was off only 32 points. After a drop of 113.85 points, this seems rather tepid.

But it you watch the VIX, you no doubt noticed that it did not continue to make a huge follow through.

In fact, the VIX fell just short of where I expected resistance, which was the 12.50 level. The high for the day came to 12.37.

The S & P 500 closed at 2,429.49, down 2.38 on the day. It also formed an inside day.

This suggests that a range expansion should be forthcoming.

Perhaps that will come tomorrow when the Fed convenes to give us their decision on a rate hike. That will be at 2:00 EST.

Here are the Key Levels for the Markets:

$VIX:

Minor level: 14.45
Major level: 14.06
Minor level: 13.67
Minor level: 12.89
Major level: 12.50
Minor level: 12.11 ***
Minor level: 11.33
Major level: 10.94 <
Minor level: 10.55
Minor level: 9.77
Major level: 9.38 <

12.50 should continue to act as resistance. I would not expect the VIX to exceed 13.28, however if it does, look for a move up to 15.63.

Today's close should tell us where the VIX should go. A close above 11.33 and I would expect another retest of 12.50.

$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 low was about 2 points under the minor 2,421.88 support line.

This level should continue to offer support. And I would not expect a violation of 2,414.10. If the S & P drops under that level, look for lower lows.

QQQ:

Major level: 146.87
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 <
Minor level: 136.72

Yesterday's low came almost to the penny at the 137.50 level. Actually, it dropped under it by 3 cents. Look for support at this level.

I would not expect the QQQ to drop under 135.94.

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

Look for support at 140.63. And the IWM still needs two closes above 141.41 to move up to 143.75.

145.31 should be resistance.

TLT:

Major level: 128.13
Minor level: 127.35
Minor level: 125.78
Major level: 125.00 <
Minor level: 124.22 **
Minor level: 122.66
Major level: 121.88
Minor level: 121.09
Minor level: 119.53
Major level: 118.75
Minor level: 117.96

The TLT is just above the minor 124.22 support level. If this level does not hold, look for a move down to 123.

Yesterday's high was just above the 124.61 resistance level.

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
Minor level: 116.41
Major level: 115.63

The GLD wil need two closes under 120.31 to drop to 118.75.

Having said that, 119.53 should still be support for the GLD. And 121.88 should be resistance.

XLE:

Major level: 71.88
Minor level: 71.10
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

The XLE closed above 66.41 yesterday, which implies a move up to 68.75.

67.97 is minor resistance. And 66.41 should be 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 is back to testing the 87.50 level. 88.28 is minor resistance and a level I would not expect the FXY to break through. If it does, it should head higher.

Watch to see if the FXY breaks back under 87.50.

AAPL:

Major levels for Apple are 162.50, 156.25, 150, 143.75, and 137.50

Apple is sitting right on the 143.75 support level I mentioned yesterday.

Way oversold intra day. A long is setting up.

WATCH LIST:

Bullish Stocks: TSLA, NTES, MLM, MMM, FDX, CI, MPC, DAL, CHD, PENN, CONN, POT, CENX

Bearish Stocks: AZO, AAP, CASY, DLTR, EXR, LSI, SLB, JCI, SFLY

Be sure to check earnings release dates.