May 12, 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 $2.12
Short May 12th-$14.50 Call - ($0.31)

COWN - Long at $14.95

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Before I begin today's update, I need to mention that we have one open position that expires today.? And that is the short $14.50 call on FEYE.

FEYE closed just under the strike price yesterday, settling at $14.44.? If I suggest an adjustment to the position, you will receive a separate email.? If you do not receive additional instructions, that will mean to hold the calls through today's expiration.

The S & P 500 sold off and stopped at 2,381.74 before rallying to close at 2,394.44.

The low for the day was just under the minor 2,382.82 support level.? And once again, the S & P 500 moved back up to test the 2,394 area from last week's weekly price bar.

This is just another example of when support is violated price often comes back to test the area from below.

The VIX did make a push, but as we expected, it sold off against resistance.

The high for the day on the VIX was 11.23.? This was 10 cents under our 11.33 resistance level.

Because I have been mentioning the daily range recently, I do want to mention that the range for yesterday was 13.98. The ATR is now 13.45, so the range did expand as expected.

Pre markets the markets are trading with a slight bearish bias.

Look for the 2,398.48 level on the S & P 500 to be tested.? I would expect the S & P to regain that level.

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

The VIX closed at 10.60, after topping out at 11.23.? Watch the 10.94 level today.

If the VIX sells off 10.94, look for it to head lower and the markets higher.

If 10.94 holds, I would expect the markets to sell off.

Downside support should be at 9.96.? 10.94 should be 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

Objective is still to 2,406.30.? 2,398.48 will most likely be tested today.

2,394.50 and 2,390.60 should offer support now.

On the upside, 2,402.30 is a minor resistance level.

QQQ: ?

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
Minor level: 133.60

The QQQ actually closed again above 138.28.? It closed one penny above the level.

137.89 should be minor support.? The QQQ is still bullish.

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

The IWM closed at 138.24, just four cents under the minor 138.28 support level.

137.50 should be major support.? And 137.89 should be minor support.

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 ?

The objective should still be down to 118.75.? 121.09 should be resistance.

The 60 minute chart has moved into a downtrend.

120.12 should be minor support and 120.70 resistance.

GLD: ?

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 <
Minor level: 114.85 **
Minor level: 113.28
Major level: 112.50

Both the short term 30 minute and 60 minute charts are in downtrends.? Any rally should be short lived.

To move higher, the GLD would need two closes above 116.41.? The next level on the downside is 114.85.

114.84 should be minor support.? 117.19 should be minor resistance.

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

The XLE hit a high of 68.48.? It is within 30 cents of the target.? For the XLE to head higher, it will need to take out 68.75.

67.97 is a minor support level.? 68.55 should be minor resistance.

FXY:

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 did bounce at the 84.38 level, as expected.? It closed at 84.58.? to move higher, the FXY will need two closes above 84.77.

85.94 should be major resistance.

84.77 should be minor resistance.? And 84.38 should be minor support.

AAPL:

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

The next objective is to 156.25.? 150.00 should be major support.? And 153.13 should be minor support.

159.38 could offer resistance.? Trend is bullish.

WATCH LIST:

Bullish Stocks: PCLN, GOOGL, REGN, NOC, HUM, MMM, GD, AET, ALGN, ADBE, RCL, SWKS, KLAC, CBOE, CCL, CTSH, SSYS, BBRY

Bearish Stocks: FLT, SJM, ATHN, THS, DVA, TCO, OXY, CLR, EDR, BSFT

Be sure to check earnings release dates