June 23, 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
VRX Short June 30th-$16.50 call at $0.30

APA Long Oct $47.50 Call at $3.45
APA Short Oct $52.50 Call at $1.10

DIS Long June 23, 2017 $107 Call at $0.73
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For the second day in a row, the S & P 500 posted a modest loss. For the day, it was down 1.11 and closed at 2,434.50.

The range for the day was only 8.35 points. This is well below the average true range, which is now 13.82. And considering that it was also an inside day, we should expect that a range expansion is coming.

Shorter term, intra day timeframes still remain in uptrend formations, so the bullish bias remains for the market.

We have one position that expires today and that is the long calls on DIS. DIS is trading below the strike, so it appears they will not expire in the money.

When trading long weekly options money management is the key. The idea is to risk a small percentage for a multiple gain return.

I also added two more short option positions yesterday. The first was the short call that expires next week on VRX.

I had mentioned that I wanted to add to the VRX position, but there was never a suitable entry level. At this point, I do believe it is a bit overbought, which is why I suggested selling the $16.50 call. If we do get a decent entry I will add to this position.

The other short position are the short October $52.50 calls on APA.

I do believe that oil is oversold short term and a bounce maybe forthcoming. The USO is still trading under the lower extreme band on it daily chart, to give you an idea of how oversold it is.

Continue to follow the resistance levels.

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 did close back under 10.94 for a second day, so I would expect a retest of 9.38.

10.74 and 10.94 should act as resistance. 9.77 should offer 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

2,433.60 continues to offer support. If the S & P 500 does break under this level, a drop to 2,421 could be in the making. This minor level has held as support for the last two days.

On the upside, the 2,441.40 level has acted as resistance.

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 for the second day just above the major 140.63 level.

Minor support should be at 140.23 and 140.63. If the QQQ can clear 141.02, I would expect it to move higher.

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 got as low as 139.01 before reversing to close at 139.98. 139.06 is a minor support level. I would expect a retest of 140.63.

Support should be at 139.45.

I mentioned to watch for support at 139 yesterday and the low came one penny above it.

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 closed at 127.84 yesterday. It is within 30 cents of the objective.

127.93 should be minor resistance. And 127.54 should be minor 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 bounced as expected and closed at 118.92. The 120 level should offer resistance.

118.75 should act as support.

XLE:

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
Minor level: 61.72
Minor level: 60.16
Major level: 59.38

If the XLE closes under 64.85 today, it should drop to 62.50.

Resistance is now at 65.63. Closer to a bottom than a top.

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 above 86.33 and the FXY should test 87.50. 87.50 should be resistance.

Minor support is at 86.43 and 86.62 is minor resistance.

AAPL:

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

Minor support is at 145.31. Watch to see if this holds. If it does, I would expect a push up for Apple.

Next target is $150.

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.