March 9, 2018 - 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
AMC Long at $15.27
Premium Collected - $2.80
Short March $16 call @ $0.55
UNIT Long at $17.00
Premium Collected - $0.35
VIPS Long @ $17.19 Premium Collected - $2.80 Short March 16th - $17.00 call @ $1.15 ..........................................................................................
The market actually opened with a gap up yesterday. I mention this because it seems that for the last few days the market has been gapping down at the open. The market opened at 2,732,75. It opened almost 6 points to the upside. I mentioned yesterday that minor support for the S & P 500 is around 2,724.60. And as it turned out, the low for the day was 2,722.65 So, the low for the day was about 2 points under the minor support level. This is why I say the levels I share are areas. They are not absolute prices and you can't expect price to stop on a dime on them. Though as times they do stop exactly on the levels. After stopping on the low, the market rallied and ran to a high of 2,740.45, before pulling back slightly to close at 2,738.97. The VIX of course, confirmed the move up by continuing to head lower. The VIX ended up closing at 16.60. This of course, is below the minor 17.19 level. It now sets up a situation where if the VIX closes under 17.19 today, it should head lower, with a objectve to 12.50. This would be just above the major 2734.40 level. Minor support would be around 2,724.60. Here are the Key Levels for the Markets: $VIX: Major level: 31.25 Minor level: 29.69 Minor level: 26.56 Major level: 25.00 Minor level: 23.44 Minor level: 20.31 Major level: 18.75 < Minor level: 17.19 ** Minor level: 14.06 Major level: 12.50 Minor level: 10.94 The VIX ended up closing at 16.60. As I mentioned, a close today under 17.19 and the VIX should test 12.50. 18.75 should still be resistance. On the downside, 15.63 is a minor support level. $SPX: 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 Major level: 2,578.10 The S & P 500 ended the day closing at 2,738.97. This of course is above the major 2,734.40 level. This level should now be support. The next level on the upside is 2,753.93. Two closes above it and the S & P 500 should test 2,812.50. 2,725 should continue to offer support. QQQ: Major level: 175.00 Minor level: 173.44 Minor level: 170.31 ** 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 The QQQ closed at 169.86. The high yesterday was 169.98. 170.31 is the key level on the upside. Two closes above 170.31 and the QQQ should test 175. 169.53 should be minor support and major support should be at 168.75. IWM: Major level: 159.38 Minor level: 158.60 Minor level: 157.03 ** Major level: 156.25 < Minor level: 155.47 Minor level: 153.91 Major level: 153.13 Minor level: 152.35 Minor level: 150.78 Major level: 150.00 The IWM closed at 156.42. The IWM is still above the 156.25 level. Two closes above 157.03 and the IWM should test 159.38. 154.69 should offer minor support. TLT: Minor level: 120.70 Major level: 120.31 Minor level: 119.92 Minor level: 119.14 ** Major level: 118.75 < Minor level: 118.36 ** Minor level: 117.58 Major level: 117.19 Minor level: 116.80 Minor level: 116.02 Major level: 115.63 The TLT closed at 118.69. The TLT continues to bounce around oversold territory. To move lower, the TLT will need two closes under 117.58. To move higher, it will need two closes above 119.14. Minor resistance is at 118.75. I don't expect a drop under 115.63, but if the TLT does, fall under this level, it should head lower. 117.97 is a minor support level on the downside. A break under this level and expect the TLT to head lower. GLD: Major level: 131.25 Minor level: 130.47 Minor level: 128.91 Major level: 128.13 Minor level: 127.35 Minor level: 125.78 ** Major level: 125.00 < Minor level: 124.22 Minor level: 122.66 The GLD closed at 125.42. The GLD would still need two closes above 125.78 to test 128.13. The next level on the downside after 125, is 124.22. A break under 124.22 and the GLD should drop to 121.88. The GLD is at a major level. It will either break out or break down. Still holding the 125 level. XLE: Minor level: 76.95 Major level: 76.56 Minor level: 76.17 Minor level: 75.39 Major level: 75.00 Minor level: 74.22 Minor level: 72.66 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 The XLE closed at 67.17. The XLE continues to trade around the midband on the daily chart. The midband is now 67.16. The longer the XLE trades sidesways in this range, bigger the move once it gets going. Wait for a violation of the midband. The violation should point us in the direction of the next minor move. 66.41 is minor support and 65.63 is major support. FXY: Major level: 91.41 Minor level: 91.22 Minor level: 90.83 ** Major level: 89.06 < Minor level: 88.87 Minor level: 88.48 Major level: 88.28 Minor level: 88.09 Minor level: 87.70 Major level: 87.50 Minor level: 87.31 Minor level: 86.92 The FXY closed at 90.23. It closed under the upper band, which is 90.35. 90.63 should be resistance. Look to see if the FXY stays under the upper band. If so, a short would be a great idea with a stop just above the upper band. AAPL: Major level: 181.25 Minor level: 180.47 Minor level: 178.91 < Major level: 178.13 Minor level: 177.35 Minor level: 175.78 Major level: 175.00 Minor level: 174.22 Minor level: 172.66 Major level: 171.88 Apple closed at 176.94, closing to the upside 1.91. 176.56 is a minor support level. Continue to buy against support. Still the best strategy. WATCH LIST: Bullish Stocks: MELI, NFLX, BLUE, PANW, RHT, WDAY, DNB, WDAY, MON, CRM, KLAC, MKC, GRUB, LULU, DIN, AKAM, AKAM, MSCC, AMAT, X Bearish Stocks: CHTR, ADX, MLM, WHR, AGN, ZBH, EXPE, DLR, ALB, MDT, RBC, CVS, IRBT, KHC Be sure to check earnings release dates.
