June 19, 2019 - MDT Pro Tips A.M.

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
Total Premium Collected - $2.37
Short June 20th - $15.50 call @ $0.27

RRC Long at $11.85
Total Premium Collected $0.70
RRC Long at $9.20

RIG Long at $8.81
Premium Collected - $1.45

FEYE Long at $17.18
Total Premium Collected $0.80

AMC Long at $16.16
Total Premium Collected $0.35

Yesterday, I suggested you sell the front week $15.50 call on SNAP. This brings the total premium collected against the position to $2.37 per share. This option expires this Friday and the cash collected was all time value.

No sooner do I mention the fact that we are expecting an expansion and we get exactly that.

The S & P 500 exploded out the tight range it had been in and closed 28.08 points higher.

The actual intra day range was 25.35 points. However, the move from high to high was 33.52 points.

The bullish gap accounts for the difference. This move also increased the daily average true range to 29.99.

The S & P 500 ended up closing out the day at 2,917.75.

What makes this significant is that it was the first close above 2,910.15.

This now implies that if the S & P 500 can close above 2,910.15 today, the upside objective should be to 2,968.80.

And as you know, I consider the 2,968.80 level very significant for the market and how the market reacts at that level should tell us a lot about the major trend.

However, there is no question that the bullish trend is strongly intact.

You will see on the monthly charts today how strong they remain.

The support area from yesterday's daily bar is in the 2,912 to 2,918 area.

The S & P 500 did actually close just under the midpoint which is 2,918. Watch to see if it clears this level today and if it can, it should act as support.

The minor 2,910.15 level should offer support on the downside.

There is the Fed announcement today at 2:00 on interest rates. With the large range day yesterday, I am biased for a narrow move off the announcement, but as you know, this can produce excess volatility.

Here are the Key Levels for the Markets:

$VIX:

Major level: 21.88
Minor level: 21.10
Minor level: 19.53
Major level: 18.75
Minor level: 17.97
Minor level: 16.41 **
Major level: 15.63 <
Minor level: 14.85
Minor level: 13.28
Major level: 12.50
Minor level: 11.72

The VIX closed yesterday at 15.15. The VIX continues to trade under the major 15.63 level. And this level should continue to offer resistance.

15.43 should also offer minor resistance on the upside.

The VIX is oversold in the short term and could bounce. The VIX will have to move under 14.85 to move lower.

SPX:

Major level: 2,968.80 <
Minor level: 2,949.25
Minor level: 2,910.15 **
Major level: 2,890.60 < < HIT
Minor level: 2,871.08
Minor level: 2,832.03
Major level: 2,812.50
Minor level: 2,792.98
Minor level: 2,753.93
Major level: 2,734.40
Minor level: 2,714.88
Minor level: 2,675.83
Major level: 2,656.30

A close today above 2,910.15 and the S & P 500 should test the major 2,968.80 level. We had expected a run to 2,910.15 and we got it.

It should also offer support on the downside. There is also minor support at 2,905.30.

Technical support should be in the 2,893 area.

The 60 minute chart continues to move closer towards an uptrend.

QQQ:

Major level: 193.75
Minor level: 192.19
Minor level: 189.06
Major level: 187.50 < Hit
Minor level: 185.94
Minor level: 182.81
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

The QQQ closed at 186.41. The QQQ did hit the 187.50 objective we were looking for.

Yesterday's high came in at 187.72, 22 cents over the target.

The QQQ will need to clear 187.50 to move higher.

184.38 should now be support. And this level is also technical support.

The QQQ is close to crossing into an uptrend on its 60 minute chart.

IWM:

Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25 <
Minor level: 154.69
Minor level: 151.56 **
Major level: 150.00 <
Minor level: 148.44
Minor level: 145.31
Major level: 143.75

The IWM closed at 154.01. Still biased for a move up to 156.25. And the IWM is within 90 cents of it.

But, as you know, the midband should still be resistance. This level is now 154.93 and the IWM will need to clear this level to move higher.

153.13 should offer support. And technical support is at 152.60.

TLT:

Major level: 134.38
Minor level: 133.60
Minor level: 132.03 **
Major level: 131.25
Minor level: 130.47
Minor level: 128.91
Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56
Minor level: 126.17
Minor level: 125.39
Major level: 125.00

The TLT closed out at 132.35. This was the first close above 132.03. This now implies that if the TLT closes above 132.03 today, it should move up to 134.38.

The TLT continues to trade above the upper band which is 131.74.

The TLT is overbought, but wait for a strong close under the upper band before shorting.

131.64 is minor support. Watch to see if the TLT can clear 132.81.

GLD:

Major level: 128.13
Minor level: 127.74
Minor level: 126.95 **
Major level: 126.56 << HIT
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
Major level: 121.88
Minor level: 121.49
Minor level: 120.70
Major level: 120.31

The GLD closed at 127.12. With a close today above 126.95, the GLD should move to 128.13.

126.56 should offer support. A move to 131 is expected.

Technical support should be at 126.50.

XLE:

Major level: 65.63
Minor level: 64.85
Minor level: 63.28
Major level: 62.50 <
Minor level: 61.72
Minor level: 60.16 **
Major level: 59.38
Minor level: 58.60
Minor level: 57.03
Major level: 56.25
Minor level: 55.47
Minor level: 53.91
Major level: 53.91

The XLE closed at 62.37. The XLE did hit the target of 62.50 we were looking for. The high came in at 62.74.

The XLE will need to close above 62.50 to move higher. But at this point, it is resistance.

On the downside, 59.38 is the key level. Two closes under this level and the XLE could drop to 50.

60.94 is a minor support level. If the XLE can hold this level, it would also confirm the move up to 62.50.

The 30 minute chart has crossed into an uptrend, so momentum is shifting to the upside. Technical support is at 61.50.

AAPL:

Minor level: 203.13
Major level: 200.00
Minor level: 196.88
Minor level: 190.63 **
Major level: 187.50 <
Minor level: 184.38
Minor level: 178.13 **
Major level: 175.00
Minor level: 171.88
Minor level: 165.63
Major level: 162.50

Apple closed at 198.45. Apple did hit 200 as expected. The high for the day was 200.29.

196.88 should be minor support.

200 is a key level for Apple. If it does take out 200, it should move up to 250.

WATCH LIST:

Bullish Stocks: CMG, ORLY, ANTM, MCD, LIN, ACN, DECK, CB, KMB, DG, RACE, PYPL, YUM, ALL, ROKU, WING

Bearish Stocks: NFLX, DPZ, AGN, CXO, UTHR, NTAP, FIZZ, PRGO, AMTD

Be sure to check earnings release dates.