June 15, 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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The Fed stayed on course with a rate hike yesterday. They indicated that they will be on course for a series of rate hikes in 2017 and 2018.

The S & P 500 opened at 2,443.75, gapping up from the prior close. And sold off to a low of 2,428.34 before rallying to close at 2,437.91.

Once again the 2,437.50 affected the market.

The TLT was the most affected from the Fed announcement yesterday. It had a massive bullish gap open of 1.54 points. And volume exploded.

The TLT gapped up and closed above the midband on its daily chart. And gapped above a key resistance level.

It also gapped above and closed above the next upside confirming level. A close today above 126.78 and the TLT should head higher.

Pre open, all markets are set to open with bearish gaps. As I write this, the S & P 500 is trading about 15 points to the downside.

The VIX should jump this morning. Watch to see if the VIX stalls and starts to head before initiating any long positions. I will outline where resistance should be for the VIX below.

Continue to follow the levels for the VIX and the markets.

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 <

The VIX closed above 10.55 yesterday, at 10.57. This would mean that the VIX would need two closes under 10.55 to move down.

10.94 should be minor resistance. If the VIX opens above this level, I would expect it to offer support.

12.50 should still be resistance and I would NOT expect the VIX to take out 13.28. If it does, look for the VIX to continue higher.

$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

The 2,445.30 level offered resistance yesterday.

The S & P 500 should open under the 2,437.50 level, which means it should be resistance.

2,421.88 should be support. If the S & P 500 closes under that level for two days, it should drop to 2,375.

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

With a close today under 139.85, the QQQ should drop to 137.50.

140.63 should be resistance. 139.84 is also a minor resistance level. A break under 139.84 should confirm a move lower.

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

140.63 should be support for the IWM. A break under that level and the IWM should head lower. 139.85 is the minor level to watch. Two closes under 139.85 and the IWM should drop to 137.50.

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

127.35 should be minor resistance. 125.78 should be support. At this point, 125 should be support. Watch to see if the TLT can clear 126.56 today. This should be the level to watch today.

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 closed under 120.32 yesterday. A close today uner 120.32 and the GLD should drop to 118.75.

118.75 should be support on the first run down. If it breaks that level, expect lower lows for the GLD.

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

65.63 should be support. If the XLE violated that level, look for it to head lower.

67.19 is minor resistance. And 65.82 should be minor 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

It closed at 87.77 yesterday, just above the 87.50 level. 89.06 is strong resistance. If the FXY can clear 89.06 is should head higher.

87.70 should be minor support.

AAPL:

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

Apple could retest 143.75 again, but continues to be oversold.

145.31 is the level to watch. An open under it and Apple should head lower. 140.63 should be support. A break under it, and Apple should head lower.

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.