May 1, 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

FEYE Long at $13.65
Total Premium Collected $1.81

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As we begin the month of May, you should have been called out of your shares of SNAP, assuming you followed the recent alerts.? The net result is a gain of about 8.3% for a week and one half holding period.

Last week, the S & P 500 closed 35.51 points to the upside.? Haing said that, the gap open last Monday accounted for 21.64 points.

After the bullish gap open last Monday, the S & P 500 peaked out at 2,398.16 on Wednesday, before selling off to to close at 2,384.20.

As for the VIX, it closed 26.04% to the downside, at 10.82.? You may recognize that this is under the major 10.94 level.

The question now is it time to consider shorting the markets?

I don't think so.? And I say that for a few reasons.

The first is that fact that we still have an active objective for the S & P 500 up to the 2,406.30 level.

Based on this, I would still be inclined to be long and buy against support.

The second reason is that the 60 minute chart for the S & P 500 ha crossed into an uptrend.

This now means that both the 30 minute chart and the 60 minute chart are in uptrends, which suggests that a move higher should be forthcoming.

Support levels based on last week's weekly price bar, is in the 2,377.27 to 2,384 area.

Also, the gap becomes an area of support.? The gap is at 2,352.? And the 50% level of the gap is 2,361.? These are areas where support should hold. ?

I also want to mention that the upper band on the monthly chart is 2,334.80.? As you know, this is a key level and the market is trading above it.

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 Strong support

Both short term charts for the VIX are in downtrend formation.? The trigger should be quick on any short term long VIX trades.

The VIX still needs two closes under 10.55 to move down to 9.38.? 11.72 should offer resistance.

$SPX:

Major level: 2,406.30 <
Minor level: 2,398.48 **
Minor level: 2,382.82
Major level: 2,375.00
Minor level: 2,367.20
Minor level: 2,351.60
Major level: 2,343.80
Minor level: 2,335.98

2,382.82 should continue to offer support.? 2,386.70 is a short term level to watch as well.? If the S & P 500 closes under 2,386.70, it could test 2,375.

QQQ: ?

Major level: 137.50
Minor level: 136.72
Minor level: 135.16 <
Major level: 134.38 ***
Minor level: 133.60
Minor level: 132.03
Major level: 131.25
Minor level: 130.47

Friday closed above 135.16 for the second day.? A move up to 137.50 is now the objective for the QQQ.

135.94 should be minor support.? 135.74 should also be minor support.

IWM:

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
Major level: 134.38

Since hitting the 141.41 minor level, the IWM has sold off.? Friday, it closed at 139.06.

A close today under 140.63 and the IWM should test 137.50.? I would expect another rally for the IWM.

TLT: ?

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 ?

To move up to 125, the TLT needs two closes above 122.66.

122.46 is a minor resistance level and 122.07 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 needs two two closes under 120.32 to move down to 118.75.

Look for a retest of 121.88.? 119.92 is a minor support level.

XLE:

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

A test of 65.63 should be the next minor move.? 68.36 should be minor resistance.

67.19 should be minor support.

FXY:

Major level: 89.06
Minor level: 88.67
Minor level: 87.89
Major level: 87.50 **
Minor level: 87.11 <
Minor level: 86.33
Major level: 85.94? <

85.94 should be the objective.? If the FXY gets under 86.33, look for that level to act as resistance.

AAPL:

Major levels for Apple are 150, 143.75, 137.50, 131.25,
and 125.

Apple continues to try and hold the 143.75 level.? Again.

Minor resistance is at 145.31.? Two closes above 145.31 and the target for Apple should be to 150.? 142.19 should be minor support.

WATCH LIST:

Bullish Stocks: AMZN, GOOGL, GD, ANTM, COST, JAZZ, UNH, HON, MON, BABA, DLR, WDC, CRM, PNW, CAKE,

Bearish Stocks: SJM, CL, ESRX, MNST, OXY, HIBB, SBH, HLX

Be sure to check earnings release dates.