June 19, 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.

CURRENT POSITIONS:

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

DIS Long June 23, 2017 $107 Call at $0.73
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After the tech sell off from two weeks ago, the markets quieted down last week.

The S & P 500 opened the week at 2,425.88 and closed at 2,433.15. The prior weekly close was 2,431.77, which means it closed slightly to the upside.

The week also formed an inside bar, which means it had a lower high and a higher low. A range expansion often follows this price set up.

The NASD Compsite also quieted down last week. The range from two weeks ago was 204 points. Last week it was about 130 points.

For the NASD Market, the big news of course was the announcement that Amazon would acquire Whole Foods. This immediately caused all food retailers to sell off.

Kroger (KR) dropped another 9% or $2.27. Costco sold off 7.19% or $12.95.

Even Walmart sold off on the news.

This is being viewed that Amazon will take over the food market. Quite frankly, I think this creates some opportunities in these oversold retailers. Especially a company like Costco, which has their own following.

I could be wrong, but I will be watching this sector.

The support area from last week's price bar for the S & P 500 should be in the 2,429.50 to 2,431.00 area. Pre open, the markets appear set to open to the upside, so watch to see if this level is tested. If it does, and it holds, it could be the low for the week.

Marketwide news announcements are slow this week. Earnings do continue with FDX reporting after the close today. ADBE also reports after the close today.

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 <

11.33 provided resistance Friday. The high for the day was 11.35. The VIX ended up closing at 10.38.

This now implies that if the VIX should close today under 10.55, it should retest the 9.38 level.

10.94 should be minor resistance. And 9.77 could offer minor support.

$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 S & P 500 closed at 2,433.15 on Friday. 2,437.50 should offer some resistance, but if the S & P can clear this level, I would expect it to offer support.

Minor support should be at 2,425.80 and 2,429.70.

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

The QQQ closed at 138.15 on Friday. This is just above the major 137.50 level. The QQQ will need two closes above 138.28 to move up to 140.63.

Minor resistance is at 139.06. And 137.89 should offer minor support.

 

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

139.45 should be minor support. And look for resistance at 140.63.
To move up to 143.75, the IWM will need two closes above 141.41.

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

With multiple closes above 125.78, the TLT should test 128.13.

Minor support should be at 126.17. And 126.76 should be minor resistance.

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 at 119.34, just under the minor 119.53 level. The 119.53 level should now offer resistance.

120.31 should also be resistance. On the downside, the major level is 117.97. If the GLD closes under that level for two days, it could drop to 115.

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 bounced off the 65.63 level, as expected. To move higher, the XLE will need to close for two days above 66.41.

67.97 should offer minor resistance. Minor support is at 66.02.

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

A close today under 87.11 and the FXY should drop to 85.94, which is a key level.

87.50 should continue to offer resistance.

AAPL:

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

Apple closed just above the 143.75 level.

140.63 should continue to be support and a level that should not be violated. 145.31 could offer minor resistance. Apple will need to clear 145.31 to move higher.

WATCH LIST:

Bullish Stocks: TSLA, NOC, MMM, BA, ANTM, CI, CMI, IBM, AET, ATHN, CLX, HON, WYNN, STMP, KMB, VRTX, MCO, RCL, CAT

Bearish Stocks: BWLD, CASY, EOG, FANG, ROST, AMBA, KORS, BGS, CLR

Be sure to check earnings release dates