June 17, 2020 - MDT Pro Tips

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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.

Yesterday, the S & P 500 continued to follow through from the reversal day from yesterday.

The day closed 58.13 points higher. The S & P closed the day at 3,124.72.

The high for the day was 3,153.45. And the range for the day ended up at 77.39 points. The range ended up being slightly higher than the daily average true range of 72.78.

Even though the market closed higher, it did close under the open.

The market opened at 3,131.00 and closed about 6 points under the open.

The day closed at 63% of the range of the daily bar.

The daily bar essentially formed a doji.

So, for today watch the close of 3,124.72. The close also happens to be right at the major 3,125 support line.

Pre open, the S & P is trading about 22 points higher.

This would put the open at around 3,147. This would put the open about 7 points below yesterdays high of 3,153.45.

Watch to see if the S & P can take out yesterday's high. If it can, it should be support. And on the downside, support should be at the close of 3,124.72.

Short term support is still bullish.

ORCL reported last night and is trading about $1.78 lower.

Here are the Key Levels for the Markets:

$VIX:

Major level: 37.50
Minor level: 36.72
Minor level: 35.16 **
Major level: 34.38 <
Minor level: 33.60 **
Minor level: 32.03
Major level: 31.25
Minor level: 30.47
Minor level: 28.91
Major level: 28.13
Minor level: 27.35
Minor level: 25.78
Major level: 25.00
Minor level: 24.22

The VIX closed at 33.67. It closed 2.12% lower on the day. The VIX got as high as 37.45 before dropping into the close.

This put the VIX under the major 34.38 level. Resistance should be at 35.16. And watch the minor 33.60 level.

Two closes under this level and it should drop to 31.25.

Support should be around 31.

S & P 500:

Major level: 3,281.20
Minor level: 3,242.15
Minor level: 3,164.00
Major level: 3,125.00 <<
Minor level: 3,085.95
Minor level: 3,007.85
Major level: 2,968.80
Minor level: 2,929.75
Minor level: 2,851.65
Major level: 2,812.50
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30

The S & P closed at 3,124.72. With an open above the major 3.125 level, look for it to act as support. Also, the minor 3,085.95 level should be support as well.

Technical support should be around 3,062. And at the midband on the 60 minute chart, which is 2,983.

Support from yesterday's daily bar should be around 3,128. And under that level is 3,115.

QQQ:

Major level: 250.00
Minor level: 248.54
Minor level: 245.31
Major level: 243.75 < Hit
Minor level: 242.15
Minor level: 239.00 **
Major level: 237.50
Minor level: 235.91
Minor level: 232.78
Major level: 231.22
Minor level: 229.66
Minor level: 226.56
Major level: 225.00

The QQQ closed at 242.85. Yesterday's high hit 244.39, which took out the major 243.75 level.

Support should be at the minor 242.15 level. And the QQQ will need two closes above 245.31 to move higher.

Support from yesterday's bar should be around 242.

The QQQ is almost at the upper band on the daily chart. The upper band is now 248.01.

IWM:

Major level: 156.25
Minor level: 154.70
Minor level: 151.56
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75 <
Minor level: 142.19
Minor level: 139.06
Major level: 137.50
Minor level: 135.94
Minor level: 132.81
Major level: 131.25

The IWM closed at 144.38. The IWM took out the 143.75 objective. It did get above the minor 145.31 level, but could not close above it.

The IWM will need two closes above 145.31 to move higher.

Note that the midband is 146.93 and the IWM hit it, but could not close above it.

As you know, this level is resistance until it can be cleared.

Technical support should be around 140.
3,124.72

TLT:

Major level: 165.63
Minor level: 164.85
Minor level: 163.28 **
Major level: 162.50
Minor level: 161.72
Minor level: 160.16
Major level: 159.38 <
Minor level: 158.60
Minor level: 157.03
Major level: 156.25
Minor level: 155.47
Minor level: 153.91
Major level: 153.13

The TLT closed at 159.90. The TLT closed just above the major 159.38 level. Watch this level today.

The TLT will need two closes under 158.60 to move lower.

At this point, resistance should be at the minor 160.16 level.

The TLT is in a downtrend on the 60 minute chart. Resistance should be at the 162 level.

GLD:

Major level: 165.63
Minor level: 164.85
Minor level: 163.28
Major level: 162.50 < Hit
Minor level: 161.72
Minor level: 160.16
Major level: 159.38
Minor level: 158.60
Minor level: 157.03
Major level: 156.25
Minor level: 155.47
Minor level: 153.91
Major level: 153.13

The GLD closed at 162.25. The GLD closed just under the major 162.50 level again. Watch this level again today.

At this point, watch the 163.28 level on the upside and 161.72 on the downside.

Technical support should be at 161. A break under this level the GLD should continue lower.

XLE:

Minor level: 47.65
Major level: 46.88
Minor level: 46.09
Minor level: 44.53
Major level: 43.75
Minor level: 42.97
Minor level: 41.41
Major level: 40.63 <
Minor level: 39.83
Minor level: 38.28
Major level: 37.50
Minor level: 36.72
Minor level: 35.15
Major level: 34.27

The XLE closed at 41.09. The XLE managed to close above the major 40.63 level.

The XLE will need to close above 41.41 to move higher.

The midband on the 60 minute chart is now 39 and the XLE cleared it. This should now be support.

AAPL:

Major level: 362.50
Minor level: 359.38
Minor level: 353.13 **
Major level: 350.00 < HIT
Minor level: 346.88
Minor level: 340.63
Major level: 337.50
Minor level: 334.38
Minor level: 328.13
Major level: 325.00
Minor level: 321.88
Minor level: 315.63
Major level: 312.50

Apple closed at 352.08. Apple hit the 350 objective and managed to close it.

350 should now be support. And the minor 346.88 level as well.

Two closes above 353.13 and Apple should hit 362.

And technical support is right at the 343 area.

WATCH LIST:

Bullish Stocks: AMZN, TSLA, ADBE, DPZ, AAPL, ZM, MSFT, W DG, DOCU, EA, BAND, NKLA, CNNE, ZTO

Bearish Stocks: BDX, VRSN, PEP, MDT, GH, EW, ORCL, THS, FLIR, SAGE, XNCR