May 23, 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)

..........................................................................................

The snapback continued yesterday with the S & P 500 closing to the upside 12.29 points.? It closed at 2,394.02.

With the S & P 500 back above the minor 2,382.82 level, this now sets up a situation where if the S & P 500 can close above that level today, it should make a run to 2,406.

This also suggests that 2,382 should offer support on a pullback.

On the shorter term 30 minute chart, the S & P 500 broke above the midband.? This now suggests that the midband should offer support.? That level is 2,389.29.

The 30 minute chart is still in a downtrend, but if it can cross into an uptrend, the S & P 500 should continue higher.

Also, there should still be support around 2,380, which is based on last week's weekly price bar.

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 **
Major level: 10.94
Major level:? 9.38

Yesterday's high for the VIX came at 12.52, just 2 cents above the previously identified resistance level of 12.50.

And the VIX closed one cent under the 10.94 minor level.

11.72 should offer minor resistance.

$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

Objective should be back to 2.406.30.? 2,382.80 should be support.? And watch the 2,390 level today.? It should offer support.

Minor resistance could be at 2,398.40.

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 at 139.? A close today above 138.28 implies a move up to 140.63.

Support should be at 137.89 and 138.28.

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 again.? It closed at 136.95.? The objective should now be to 137.50.

136.72 should be minor support.? Look for this level to be tested today.

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 has now spent three days under the 124.22 level.? 123.44 should be minor resistance.? And watch the 123.34 level on the downside.

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 is right up against the midband on the daily chart. That level is 120 and the GLD closed at 119.90.

Watch to see if the GLD get through this level or if it fails.

120.31 should be minor resistance.

118.75 should 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.? The XLE hit 68.48 before pulling back.

Watch to see if the XLE closes under 67.97.? If it closes under that level today, it should retest 65.63.

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

87.50 should still be strong resistance.? The FXY has now spent four days just under the 87.50 level.

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

Apple closed above the 153.13 level.? A close today above 153.13 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.