June 20, 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
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DUST Long $4.50
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DYN Long at $12.55
Premium Collected $0.48

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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Yesterday took out the high of last week's inside bar and the S & P 500 closed at 2,453.44. It closed 20.29 points to the upside.

I would expect last weeks high now to be support. That price is 2,443.75. And as I mentioned yesterday, a range expansion should be expected after the inside bar from last week.

But the question now is when do we hit 2,500?

I know it seems remarkable to be discussing the 2,500 level for the S & P 500 when you consider that last February the market was at 1,810.

Also, the S & P 500 had its first close above 2,453.12. This now sets ups a scenario where a close today above that level and the upside objective is to 2,500.

Of course I will be monitoring this today.

I mentioned how some of the retail grocers were oversold based on the Amazon buyout announcement of Whole Foods. It is also worthy to note that some food producers also were victims in that.

CAG, for example, has been a casualty of that take over as well.

At some point, these deals will present opportunity.

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 <

With a close yesterday at 10.24, this sets up a retest of the 9.38 level.

10.94 should be resistance. And 9.38 should be 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

As I mentioned, a close today above 2,453.12 sets up a move to 2,500.

Minor support should be at 2,449.20. And on a deeper pullback, 2,441.40 should be support.

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 almost closed back above 140.63. At this point, 141.41 should be minor resistance.

139.45 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

The IWM will need two closes above 141.41, to move back up to 143.75.

It closed at 141.23 or just under the 141.41 level. 140.63 should be support. 141.80 could be minor resistance.

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

The TLT should test the 128.13 level. However, 126.76 is minor resistance.

126.07 should be support.

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 118.75. To move lower, it will need two closes under 117.97.

117.97 is the key level at the moment.

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

We should know today if the XLE can hold the 65.63 level. If it can't it should drop lower.

66.41 should offer minor resistance. Minor support is at 65.63.

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

The FXY broke and closed at 86.24. If you followed the strategy I outlined on the short trade set up, you should now be lowering your stop.

Target is to 85.94 at this point. A break under 85.94 should tell us how low the FXY should drop.

AAPL:

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

Apple had a strong reversal yesterday, closing at $146.34. It was up $4.07 on the day.

Next target is $150. A close today above $145.31 should confirm that. And look for $145.31 to offer support.

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