May 17, 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.

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It seems for the last three weeks I have writing virtually the same thing every day.

And yesterday is no different.? Except for the fact that the S & P 500 is now less than one point from our objective of 2,406.30.

Yesterday's high came in at 2,405.77. Close enough to say the objective has been hit. ?

The daily range was only 9.72 points, compared with an average true range of 12.78.? In other words, the market had another contraction.

Once again, I seem to be writing this.

Yesterday, the down to up volume picked up.

Pre open the markets are set to open lower. It looks like the S & P 500 should open about 11 points to the downside.

Trends still remain bullish, so look for a reversal to the downside on the VIX before initiating long positions.

Today is our regularly scheduled webinar at 12:00 EST. Today I am going to review a set up where buying above the upper bands in worth the risk.? I hope to see you on the webinar.

The support area from last week's weekly price bar should be in the 2,393 to 2,395 area.? ?

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 level

The VIX closed at 10.65, just above the 10.55 level.? 11.72 should ne minor resistance. ?

10.16 should be short term short.

$SPX:

Major level: 2,437.50 <<<
Minor level: 2,429.70
Minor level: 2,414.10
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

2,398 should be minor support.? 2,402.30 should be minor resistance.

On the downside, watch the 2,390.60 level.? It should offer support.

QQQ: ?

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
Major level: 134.38

The 139 to 139.26 area should offer support.? If 139 cannot hold, I would expect the 137.50 level to.

I do expect a rally on the QQQ after it pulls back.

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 again above 138.38. The objective should be up to 140.63.

137.50 should be major support. And 138.28 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 TLT hit the 121.88 level.? Yesterday's high was 121.89.

121.88 should be resistance.? Watch to see if the TLT can clear this level.

120.31 should be short term support.? Resistance is at 122.66.

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

The GLD closed at 117.65.? A close today above 116.41 implies a move up to 118.75.

Watch the 117.19 level.? If the GLD gets above it should be support.

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 closed under 67.97, at 67.94 yesterday.? A close today under 67.97 implies a move down to 65.63.

67.19 is the key level on the downside.? Two closes under 67.19 and the XLE could drop to 62.

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

At this point, if the FXY can close above 84.77, it should move up to 85.94.

Watch to see if the FXY can clear 85.16.? If it can, it should be support.

AAPL:

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

150 should still be major support for Apple. And look for minor support at 153.13.

159.38 could be minor resistance.

WATCH LIST:

Bullish Stocks: AMZN, REGN, TSLA, ULTA, AVGO, HUM, BIDU, ANTM, NFLX, CMI, BABA, ADSK, SWKS, V, IRBT

Bearish Stocks: SPG, SJM, CLB, CCI, VRSK, ETR, CL, ESRX, GIS, VFC

Be sure to check earnings release dates.