March 29, 2019 - MDT Pro Tips A.M.

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

SNAP Long at $14.54
Total Premium Collected - $1.65

RRC Long at $11.85
Total Premium Collected $0.70

RIG Long at $8.81
Premium Collected - $0.81
RIG Short March 29th - $10.50 Call @ $0.35

FEYE Long at $17.18
Total Premium Collected $0.55
FEYE Short March 29th - $17.50 Call @ $0.25

FCX Long at $12.74
Total Premium Collected $0.48
FCX Short March 29th - $13 Call @ $0.24

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For today, you should have three positions that expire. They are all short calls with today's expiration.

This includes the short $9.50 call on RIG, the short $17.50 call on FEYE, and the final position is the short $13 call on FCX.

The closest to the strike price is FCX which is 27 cents under the $13 strike. Hold all positions and if the deal makes sense, I will suggest you roll it forward. If you don't get a separate email about this, then just hold the position.

Yesterday, the S & P 500 moved up and closed back above the major 2,812.50 level. For the day, the market was up 10.07 points and closed at 2,815.44.

And yesterday was an inside day with a lower high and higher low.

This is not too much of a shock, as I said this yesterday ... "With an expansion yesterday, it is possible today could be a contraction."

And that is what happened. The intra day range was only 20.94 points. this was 73% of the daily average true range which now reads 28.61 points.

The high for yesterday was 2,819.71. This should not be a shock as I said yesterday that the S & P 500 needs to clear the midband on the 10 minute to head higher.

In fact, I said this yesterday ... "So, for today, the key again will be to see if the
S & P 500 can clear the midband on the short term 10 minute chart, which is now 2,819."

The market stalled right at the midband at 10:30 AM EST. After dropping to the daily low, the S & P 500 rallied back to ... guess where? To 2,817, which was the midband that now reads 2,816.

So, in the last three days, the S & P 500 bounced off the midband on the 10 minute chart 4 times.

Do you think these bands have any relevancy for the markets?

I am hoping that by now you do feel they are important levels for the markets.

So, what does this all mean?

First off, with an inside day yesterday, we do expect an expansion. It may not happen today, but it will.

And second, we now have had 4 tests of the midband on the 10 minute chart. Will the market clear it today?

Pre open, the S & P 500 is trading about 3.50 points higher. Assuming this trading holds into the open, the market should open about 2,819 or about 3 points above the midband I have been discussing.

Assuming this does happen, the midband should then be support.

In scoping back to look at this week's weekly price bar, the range so far is only 44.85 points. With a weekly average true range of 81.36 points, you can see that a contraction is forming.

And the midpoint of the weekly bar, so far, is 2,807. Watch for support at this level if the market does pullback. And last week's midpoint is 2,831. Watch this level on a rally higher.

Support from yesterday's daily price bar is the close which is 2,815.

Here are the Key Levels for the Markets:

$VIX:

Minor level: 22.66
Major level: 21.88
Minor level: 21.10
Minor level: 19.53
Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63 <
Minor level: 14.85 **
Minor level: 13.28
Major level: 12.50

The VIX closed out the day at 14.43. So, now the VIX has closed back under the minor 14.85 level. A close today under it and it should drop to 12.50.

14.85 should be resistance. And 15.63, which also happens to be yesterday's high, should be strong resistance.

SPX:

Major level: 2,890.60 <
Minor level: 2,871.08
Minor level: 2,832.03 **
Major level: 2,812.50 <
Minor level: 2,792.98
Minor level: 2,753.93
Major level: 2,734.40
Minor level: 2,714.88
Minor level: 2,675.83
Major level: 2,656.30
Minor level: 2,636.75
Minor level: 2,597.65

The minor 2,797.90 level held as support yesterday. Yesterday's low was 2,798.77, about about one point above it.

With the S & P 500, getting back above 2,812.50, look for support there.

On the upside, if the S & P 500 can clear 2,822.30, it should continue higher.

Both the 30 and 60 minute charts continue to be bullish. So, bias is still to the upside. Watch to see if the S & P 500 can clear the resistance level at 2,816.

QQQ:

Major level: 193.75
Minor level: 192.19
Minor level: 189.06
Major level: 187.50
Minor level: 185.94
Minor level: 182.81
Major level: 181.25
Minor level: 179.69 **
Minor level: 176.56
Major level: 175.00
Minor level: 173.44
Minor level: 170.31
Major level: 168.75
Minor level: 167.19

The QQQ closed at 178.31. The QQQ held support at the minor 178.13 level and this level should continue to offer support.

Like the S & P 500, both short term charts are bullish. Technical support is at 176 and the QQQ held support there yesterday.

Technical resistance is at 179.20. The QQQ will need to clear this level to head higher.

IWM:

Major level: 168.75
Minor level: 167.19
Minor level: 164.06
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25
Minor level: 154.69
Minor level: 151.56 **
Major level: 150.00 <
Minor level: 148.44

The IWM closed at 152.62. With a close above 151.56, this now implies that if the IWM closes above it today, it should test 156.25.

But, we still have the midband overhead as resistance. That level is 155.91.

151.56 should offer support now.

TLT:

Major level: 128.13
Minor level: 127.74
Minor level: 126.95
Major level: 126.56 <
Minor level: 126.17
Minor level: 125.39
Major level: 125.00
Minor level: 124.61
Minor level: 123.83
Major level: 123.44
Minor level: 123.05
Minor level: 122.27

The TLT closed at 126.56. The TLT closed exactly on the 126.56 line.

If the TLT takes out 125.56, I would expect it to head higher. A close on the line suggests a move higher.

It is still above the upper band which is now 125.55.

125 should be support.

GLD:

Major level: 126.56
Minor level: 126.17
Minor level: 125.39
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: 120.31
Minor level: 119.92
Minor level: 119.14
Major level: 118.75

The GLD closed at 121.90 and hit the 121.88 level already. If the GLD breaks under 121.88, a drop to 115.63 is possible.

The next minor level on the downside is 121.09. If the GLD holds at this level, it should bounce. If not, look for it to drop.

The 60 minute chart is still in a downtrend. So, weakness could come in the short term.

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

The XLE closed at 66.22. At this point, I would expect a move up to 68.75.

But, the XLE is still trading just under the midband on its daily chart. That price level is 68.78. The XLE will have to, of course, clear this level.

Minor technical resistance is at 66. If the XLE can clear this level, look for a move higher. The XLE did clear this level, so look for support here.

Short term charts remain bullish. Buy against support.

FXY:

Major level: 89.84
Minor level: 89.65
Minor level: 89.26
Major level: 89.06
Minor level: 88.87
Minor level: 88.48
Major level: 88.28
Major level: 87.50
Major level: 86.72 <
Major level: 85.94 <
Minor level: 85.75
Minor level: 85.36
Major level: 85.16
Minor level: 84.97

The FXY closed at 86.24 flirting the midband which is now 86.28. Wait for a decisive move in either direction around the midband.

At this point, if the FXY cannot clear the midband, I would expect it to head lower.

The 86 area should offer support.

AAPL:

Major level: 200.00
Minor level: 198.44
Minor level: 195.31
Major level: 193.75
Minor level: 192.19 **
Minor level: 189.06
Major level: 187.50 <
Minor level: 185.94
Minor level: 182.81
Major level: 181.25

Predicted High: 191.31
Predicted Low: 186.13

Apple closed at 188.72. Watch to see if the midband holds as support. The midband is 186.73 and Apple is sitting right on it.

And both short term charts remain bullish, so wait for an entry to go long.

187.50 should offer support and a great place to buy.

WATCH LIST:

Bullish Stocks: CMG, MELI, ORLY, AVGO, WAT NOW, MA, MCD, VRSN, EW, CRM, WBC, CB, HON, XLNX, ZBH, KMB, DRI, MSFT, WP, PYPL, ZEN

Bearish Stocks: LMT, HUM, NOC, LLL, GS, FFIV, CAT, WHR, URI, CTS, JPM

Be sure to check earnings release dates.