June 2, 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
Total Premium Collected $1.95
ASNA Long at $14.20
Total Premium Collected $0.75
DUST Long $4.50
Total Premium Collected $0.70
DYN Long at $12.55
Premium Collected $0.48
COWN - Long at $14.95
VRX Long at $13.69
APA Long Oct $47.50 Call at $3.45
APA Short Oct $52.50 Call at $1.55
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The S & P 500 closed out yesterday at 2,430.06. It closed to the upside 18.26 points on the day.
This now puts us within 7 points of the objective, which is 2,437.50.
Quite frankly, I expect some resistance at this level, but with the price action we are seeing that may not be the case.
As we approach 2,437.50, this should certainly tell us a lot of what should happen next.
Clearing this level should tell us that the market should head higher.
This would mean that I would expect a move up to 2,500.
The major negative is that the VIX is down at all time lows. At some point we should see a bounce in the VIX. But quite frankly, I would not be inclined to hold any long VIX position very long.
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 down 5% yesterday, at 9.89. It is now 51 cents above the major 9.38 major support level. We know this is the objective.
The question is this ... does the VIX break under it
$SPX:
Major level: 2,437.50
Minor level: 2,429.70
Minor level: 2,414.10 <
Major level: 2,406.30 ***
Minor level: 2,398.48
Minor level: 2,382.82
Major level: 2,375.00
Minor level: 2,367.20
Minor level: 2,351.60
Major level: 2,343.80
2,437.50 should be the objective. Not much to say that has not been said.
2,421.90 should be minor support.
QQQ:
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
Major level: 134.38
First close above 141.41. A close today above that level and the objective now becomes 143.75.
142.58 should be minor resistance. 141.60 should be minor support.
Yesterday's high was 141.84.
IWM:
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
Major level: 134.38
Minor level: 133.60
The IWM surged yesterday, closing at 138.95. It was up 2.63 points on the day.
137.50 should now be support.
A close today above 138.28 and the IWM should move up to 140.63.
TLT:
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 closed at 124.15. It should test 125, which should be resistance.
123.63 is minor support. And 124.22 is minor resistance.
GLD:
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
Minor level: 114.85
Minor level: 113.28
Major level: 112.50
121.88 should be the objective.
120.31 should now be minor support. 122.66 should be minor resistance.
XLE:
Major level: 75.00
Minor level: 74.22
Minor level: 72.66
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 <<
The XLE closed above 65.63. This should be short term support.
Longer term, a move lower should happen.
66.60 is minor resistance.
FXY:
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
If you trade the yen, you should be happy as our levels have called the major turning points for quite some time.
No need to say anything further, but if you need assistance, email me directly.
AAPL:
Major levels for Apple are 162.50, 156.25, 150, 143.75, and 137.50
Apple is sitting right at ouor support level, which is 153.13. This should be support, with a move up to 162 anticipated.
WATCH LIST:
Bullish Stocks: AMZN, GOOGL, MELI, LMT, AVGO, DPZ, GD, MMM, BIDU, BA, NVDA, ADBE, HON, CB, BABA, ACN, MA
Bearish Stocks: AZO, ORLY, UHS, CLB, DLTR, MNRO, SIG, FLR, EAT, NLSN, BBBY
Be sure to check earnings release dates.