May 19, 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

COWN - Long at $14.95

DIS Long July $105 Call @ $32.60
DIS Short May 26th $109 Call @ ($.23)

VRX Long at $13.69
VRX Short May 26th - $14 at (.40)

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The S & P 500 bounced off the the oversold condition after the big sell off on Wednesday.? The low for the day came in at 2,352.72, just 1.12 points above the minor 2,351.60 support line.

From there, the market rallied back to a high of 2,375.74.? This you may recognize as a major support line.

After topping out, the S & P 500 sold off into the close and closed at 2,365.72.

This is just under the 2,367.20 level.? This means that the market has had two closes under that level, which does suggest a move down to 2,343.

Having said that, the VIX could not get through 16.02.? In fact, the high for the day was 15.71.? And the VIX closed at 14.59, just under the 15.24 level.

This implies that a close under 15.24 and the VIX should test 14.06.

It also again demonstrates how quickly the VIX can drop.? This is something I discussed on this week's webinar. Spikes in the VIX can be sharp and quick and taking long profits is highly suggested.

The S & P 500 should open with a bullish bias.? Based on the pre market trading, an open around 2,372 is projected. Watch the 2,375 level as it should be tested again today.

Here are the Key Levels for the Markets:

$VIX:
?
Minor level: 16.02
Major level: 15.63 <
Minor level: 15.24 ***
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

A close today under 15.24 implies a drop to 14.06.? 16.02 should be resistance and 15.63 should as well.

12.50 should now be support.

$SPX:

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 ***
Minor level: 2,351.60
Major level: 2,343.80 <
Minor level: 2,336.00

Based on two closes under 2,367.20, a test of 2,343.80 is the set up.

2,375 is the major level to watch.? If the market can clear this level, it should then be support.

2,351.60 could offer minor support.? And 2,359 as well.

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

Watch the 136.72 level.? The QQQ needs to get above that level to move higher. Minor support is at 135.94.

137.50 should be resistance at this point.

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 <<
Minor level: 133.60

The IWM dropped to the 134.38 level and reversed.? The IWM has already had a two level move to the downside.? At this point, 134.38 should be strong support.? A violation would indicate a potential change in the market.

136.72 could offer resistance.

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 should test 125.? However, I would expect strong resistance at 125.

A break through 125 tells us the TLT should head higher.? 124.22 should be minor resistance.? And 122.66 should be support.

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 could not close above 119.53. It reversed and closed just above 118.75.

117.97 should be support on the downside and resistance should be at 119.53.

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 just above the 67.19 level.? To move higher, it will need to close above 68.75.

65.63 should be strong support at this time.? I would not expect the XLE to break under it.? This tells us that if it does, the XLE should head lower.

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

Still biased for a test of 87.50.? And 87.50 should be strong resistance.

85.94 and 86.33 area should be support.? 87.11 could offer resistance.

AAPL:

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

Apple bounced off the 150 level.? 151.56 is the confirming line up to 156.25.? Yesterday, Apple closed above it, so a close today above it and Apple should test 156.25.

153.13 could offer 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