May 22, 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 @ ($0.23)

VRX Long at $13.69
VRX Short May 26th - $14 at ($0.40)

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After the large sell off on Wednesday, the S & P 500 managed to rally back the next two days.? The market was hovering around the 2,400 level before the sell off.? And in two days, it rallied back to close just over 2,381.

For the week, the S & P 500 closed 9.17 points to the downside.? But, it managed to close above the midpoint of the weekly bar.? This does give it a slightly bullish bias.

Based on last week's price bar, support should be in the 2,380 area.? Watch to see if this level can hold.

Thursday and Friday also proved once again that if you are trading long the VIX, the advice to book profits quickly on spikes remains the same.

Wednesday saw the huge 46 % jump on the VIX, when it popped 4.94 points to close at 15.59.? Then in the next two days, it dropped to close back under 12.50.? It closed Friday at 12.04.

In looking at the big picture, I mentioned that I did not feel the S & P 500 should break under 2,343.80.? The reason for this is because it would be a two level move down in the market.

As it turned out, the market bottomed at 2,352.72, which was just above the minor 2,351.60 support level.

From the short term perspective, the S & P 500 stopped right on the lower band on the 30 minute chart.? And Friday it bounced off the mid band, which should have been the objective.

The midband on the 30 minute chart is 2,388.75 and the midband for the 60 minute chart is 2,372.

With a close Friday of 2,381.72, the midband on the 60 minute should offer support.? And you want to see if the market can clear 2,388.75, as it should be resistance.

This Wednesday, we will get the FOMC meeting minutes at 2:00 EST.? And earnings continue this week.

Pre open, the market appears to be trading with a slight bullish bias,

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

At this point, 12.50 should offer resistance.? Next minor level to the downside is 12.11.? Two closes under 12.11 and the downside objective should be to 10.94.

11.72 could offer minor 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

The S & P 500 closes at 2,381.73, just under the minor 2,382.82 level.? It will still need two closes above the 2,382.82 level to move up to 2,406.

2,375 should be strong support.? 2,367 should also offer support.

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

The QQQ closed just above 137.50.? It should now be support.

Two closes above 138.28 and the QQQ should retest 140.63.? 138.67 should offer minor resistance.

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 closed above 135.16.? A close today above 135.16 and the IWM should test 137.50.

135.16 should be 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 ?

Objective is still to 125.? 123.44 should be minor support.

124.61 should be minor 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

119.53 should be minor resistance.? Watch to see if the GLD can clear this level.

117.97 should continue to be support on the downside.

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

68.75 is the key level at the moment.? For the XLE to move higher, it needs to clear this level.

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.

67.77 is minor support.

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

87.50 should still be strong resistance.

86.72 should be minor resistance.? 86.33 could offer minor support.

AAPL:

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

153.13 is the minor level to watch.? Two closes above that level and Apple should test 156.25.

WATCH LIST:

Bullish Stocks: AMZN, REGN, RTN, CB, NVDA, JNJ, BABA, MMC, YUM, XLNX, CTSH, ZTS, RH

Bearish Stocks: ORLY, AYI, UHS, CRO, RL, DXCM, FTL, TSCO

Be sure to check earnings release dates.