June 21, 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

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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Since hitting and closing above the next upside confirming level on Monday, the S & P 500 sold off 16.41 points yesterday. It closed at 2,437.03.

The level I am referring to is 2,453.12, of course.

I suspect that is not that all that unusual as oftentimes when a major level is violated it tends to stall out at the next upside confirming line.

This happened back in March when the S & P 500 took out 2,375 and stalled around 2,390. This also occurred in November of last year when the S & P 500 cleared 2,250 and struggled to get through 2,265.

What this scenario does set up is that a retest of 2,437.50 should most likely happen.

And with both short term 30 minute and 60 minute still strongly trending, this helps to confirm that support should come in.

I mentioned yesterday that last week's high of 2,443.75 should offer support. But it didn't. The market bounced off it before selling off.

At this point, the open gap at 2,433 should be support. If that level cannot hold, a drop to around 2,427 should happen.

I do want to mention that the down to up volume picked up considerably yesterday. The reading for the day was 4.32. The last time there was a reading that high was on May 17th, when it was 4.80.

The next day the market reversed and that was the pivot low for this last run in the market.

We will see if history repeats.

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 at 10.86, just under the 10.94 level. I would still expect major resistance at 12.50.

10.94 should be resistance. And 11.33 should as well. And 10.16 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

The S & P 500 closed just under the 2,437.50 level, at 2,437.03. At this point, support should be at the downside confirming level, which is 2,421.88.

The market will still need two closes above 2,453.12 to confirm a move up to 2,500.

Minor support levels are at 2,429 and 2,434.

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

A close today under 139.85 implies a drop to 137.50. Minor support is at 139.06. And a drop under 138.67 should confirm a move down to 137.50.

140.23 should offer minor resistance.

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

A close today under 139.85 and the IWM should test 137.50. Minor support is at 138.28 and resistance is at 140.63.

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 128.13 level should still be the objective. However, 127.73 is minor resistance.

126.56 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

To move lower, the GLD 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

The XLE broke under the 65.63 level and closed at 65.04. It could not close under the 64.85 level.

Support should be at 64.06 and resistance is now 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 closed one cent above the 86.33 level. I do expect one more retest of 87.50, so keep your stop tight if your short.

Minor support is at 86.13 and 86.62 is minor resistance.

AAPL:

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

$143.75 should offer support for Apple. $146.09 should be minor resistance.

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