May 31, 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 @ $3.60

VRX Long at $13.69
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Yesterday the market contracted again.? The S & P 500 closed 2.91 points to the downside, at 2,412.91.

This is just below the upside confirming line of 2,414.10, which as I mentioned should act as support.? Watch to see if the S & P 500 can recover this level.

The range for the day was only 5.83 points.? This is well below the average true range, which is now 13.48.

Started to sound like we have heard this before.

The VIX jumped .57 to close at 10.38.? At this point, I would still expect resistance at 10.94.

With the short week this week, we may not get any movement until Friday when the Non Farm Payroll is releases.

Pre open, the S & P 500 is trading tp the upside about 5 points.

The big news yesterday was that AMZN hit 1,000.? If AMZN takes out 1,000, I expect it to continue even higher.

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

Watch the 10.94 level.? I would not expect it to be taken out. If it is, the market should pull back.? Higher levels are still resistance.

9.38 should be support.

$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
Minor level: 2,351.60
Major level: 2,343.80

2,437.50 should be the objective. And 2,406 should be support.

As I mentioned before, watch to see if the S & P 500 can recover the 2,414 level.

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 key level is 141.41 at the moment. The QQQ closed just under it, at 141.34.? It still needs to closes above 141.34 to move up to 143.75.

141.80 should be minor resistance.? 141.02 should be minor support.

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 under 136.72.? The implication is that if the IWM closes under that level today, it could test 134.38.

135.94 should be support.? And 137.50 could be minor 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 continues to inch up to the 125 level.? It closed at 124.09.

I do expect resistance at 125.? Clearing 125 would tell us the TLT should head considerably higher.

Daily trend remains bearish.? 124.61 is 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

121.88 should be the objective.? The GLD closed at 120.14.? The mid band on the daily chart is 120.03. This is a critical support level.? If this holds as support, the GLD should head higher.? If it can't, I expect a drop.

119.92 should now be minor support.? 120.70 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 is flirting with the 65.63 level.? The low yesterday was 65.69, just 6 cents above that level.? At this point, wait to see if 65.63 is violated. If it is, it 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

The FXY should test 87.50.? I would expect strong resistance at 87.50.

And 86.72 should be minor support.

AAPL:

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

Apple continues to hold above the 153.13 level, closing at 153.67.? This should be a support level and if it can hold, a move up to 156 should be expected. ?

WATCH LIST:

Bullish Stocks: AMZN, GOOGL, MELI, LMT, AVGO, DPZ, GD, MMM, BIDU, BA, NVDA, ADBE, HON, CB, BABA, ACN, MA

Bearish Stocks: AZO, ORLY, UHS, CLB, DLTR, MNRO, SIG, FLR, EAT, NLSN, BBBY

Be sure to check earnings release dates.