June 7, 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 Long Oct $45 Put at $2.75
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The market pulled back slightly after hitting our objective. It closed at 2,429.33, down 6.77 on the day.

After Monday's narrow range of 5.23 points, yesterday followed suit with a range of 8.09 points.

Both days were under the average true range which now reads 12.70.

So even though yesterday was bearish, the thrust was not that strong, which indicates the bulls are still in charge.

Also, both short term charts remain bullish, so continue to monitor support levels for entries.

2,400 is the support level I mentioned yesterday and the S & P 500 still about 29 points above.

I also mentioned the support from last week's weekly price bar in the 2,422 to 2,425 area. The market is getting close to the upper end of that range. Watch to see if it holds and the VIX reverses to the downside.

The interesting market at the moment is the FXY.

I mentioned yesterday that a short against the 87.50 level would be a low risk entry. The FXY gapped up and hit a high of 88.08, before closing at 87.97.

So, you could actually could have entered a bit higher than 87.50. Had you done this, you could use the high of yesterday as your stop.

And today will tell if this was a good idea.

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 hit a high of 10.77, just 17 cents under 10.94.

12.50 should still be major resistance. And 10.94 should be resistance.

$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 downside confirming line to 2,375 is 2,421.88. This should offer some support for the market. And minor support is at 2,425.80.

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 under 142.97. A close today implies a move down to 140.63.

142.13 should be minor support. 143.75 should be 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

The IWM closed one point under the 139.85 level. A close today under that level and the IWM should drop to 137.50.

137.50 should be minor support.

136.72 should also be minor support.

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
Major level: 118.75
Minor level: 117.96

The TLT gapped up and is right against the midband, which is 125.95.

The minor 125.78 level is the key at the moment. It needs to close above that level to move higher. However, I would expect it offer resistance.

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

Like the TLT, the GLD gapped up and closed at 123.10. A close today above 122.66 implies a move up to 125.

122.66 should now be minor support. 124.22 should be minor resistance.

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 bounced and closed at 65.98. We had been looking for a bounce in the XLE and it looks like we are getting it. Watch the 66.41 level. It needs to close above that level to sustain this bounce.

65.63 is minor support. I would expect 66.80 to offer resistance.

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 at 87.97. This is the key level at the moment. If it cannot close above it today, look for a pullback.

88.09 is a minor resistance level. Watch this today.

AAPL:

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

153.13 should be minor support. 155.47 could be minor resistance. The 150 area should be major support.

WATCH LIST:

Bullish Stocks: PCLN, AMZN, GOOGL, REGN, TSLA, AVGO, ULTA, DPZ, MMM, GD, COST, NFLX, BDX, FB, ALGN, EXPE, CB, NVDA

Bearish Stocks: GWW, CXO, SLB, DXCM, DRQ, PDCE, DKS, GCO, CLR, CNQ, CNQ, NBL, KORS

Be sure to check earnings release dates.