November 11, 2020 - MDT Pro Tips

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a 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.

After the massive move on Monday, the S & P 500 took a breather. For the day, the market closed 4.97 points lower.

The day closed out at 3,545.53. And the range for the day contracted as well, which is certainly not usually after a long range day.

The range ended up at 45.31 points. This was 67% of the daily average true range, which is now 68.08 points.

And the day formed a doji bar.

The key levels to monitor for today are going to be the high, close, and low.

Those levels respectively are 3,557.22, 3,545.53 and 3,511.91.

With a doji bar, price will tend to move in the direction of the violation of the high or low. And the close is essentially the balance point.

Pre open, the S & P 500 is trading about 29 points higher.

This projects to an open at 3,574 or about 17 points above yesterday's high. So, the high should be violated right at the open.

On a pullback, watch the projected midpoint of the gap, which is 3,566. If this level is taken out, then the high should be tested, which is 3,557.

The support area from last week's weekly price bar should be in the 3,404 area. This should be a strong level of support and should be valid all week.

LYFT reported and is trading about $2 higher. DDOG is down $7.50 after reporting.

Thursday, we hear from PDD and WIX. And After the close on Thursday, we get earnings from DIS.

Here are the Key Levels for the Markets:

$VIX:

Minor level: 35.16
Major level: 34.38 <
Minor level: 33.60
Minor level: 32.03
Major level: 31.25
Minor level: 30.47
Minor level: 28.91
Major level: 28.13
Minor level: 27.35
Minor level: 25.78
Major level: 25.00 <
Minor level: 24.22 **
Minor level: 22.66
Major level: 21.88

The VIX closed at 24.80. The VIX closed .95 points lower.

The VIX closed just under the major 25 level. Watch the minor 24.22 on the downside. A break under this and the VIX should head lower.

The VIX and the S & P both diverged again. They both closed lower.

The VIX is still under the midband on the daily chart. The midband is 28 points and should now be resistance.

S & P 500:

Major level: 3,749.80
Minor level: 3,710.75
Minor level: 3,632.65 **
Major level: 3,593.60 <
Minor level: 3,554.55
Minor level: 3,476.45
Major level: 3,437.40
Minor level: 3,398.35
Minor level: 3,320.25
Major level: 3,281.20
Minor level: 3,242.15
Minor level: 3,164.00
Major level: 3,125.00
Minor level: 3,085.95
Minor level: 3,007.85
Major level: 2,968.80

The S & P closed at 3,545.53. The S & P closed 4.97 points lower.

On the upside, the key level should now be 3,554.55. With the projected high open, the S & P should open above this level. This level should then be support on a sell off.

Assuming 3,554 holds, it then opens the market for the move up to 3,632.65.

Monday's high took this level out and I would expect a retest of it.

The 3,552 area should provide technical support.

QQQ:

Minor level: 295.31
Major level: 293.75
Minor level: 292.19 **
Minor level: 289.06
Major level: 287.50
Minor level: 285.94 **
Minor level: 282.81
Major level: 281.25
Minor level: 279.69
Minor level: 276.56
Major level: 275.00
Minor level: 273.44
Minor level: 270.31
Major level: 268.75

The QQQ closed at 283.42. The QQQ closed 5.17 lower.

Watch the minor 285.94 level for resistance. The QQQ needs to recoup this level to head higher. If it can't, it should drop to 281.25.

Support should be at the 281 level.

Like the S & P, the QQQ took out the midband on the 60 minute chart. This level should now be support. The midband is 281.

IWM:

Major level: 175.00
Minor level: 173.44
Minor level: 170.31 **
Major level: 168.75
Minor level: 167.19
Minor level: 164.06
Major level: 162.50
Minor level: 160.94
Minor level: 157.81
Major level: 156.25
Minor level: 154.70
Minor level: 151.56
Major level: 150.00
Minor level: 148.44

The IWM closed at 172.70. The IWM closed 3.15 higher on the day.

The objective for the IWM should be to the 175 level.

The IWM took out the upper band on the 60 minute chart. That level is 175.30.

Looking for a retest of the upper band.

169 should be technical support.

TLT:

Minor level: 166.41
Major level: 165.63
Minor level: 164.85
Minor level: 163.28
Major level: 162.50
Minor level: 161.72
Minor level: 160.16
Major level: 159.38
Minor level: 158.60
Minor level: 157.03
Major level: 156.25 <
Minor level: 155.47 **
Minor level: 153.91
Major level: 153.13

The TLT closed at 155.16. It closed .90 lower. The TLT closed under the 156.25 level.

A close today under 155.47 and the TLT should drop to 153.13.

The TLT is oversold and is at the lower band on the 60 minute chart. That level is 154.24.

Looking for a bounce.

157 should be technical resistance.

GLD:

Minor level: 188.28
Major level: 187.50
Minor level: 186.72
Minor level: 185.16
Major level: 184.38 <
Minor level: 183.60
Minor level: 182.03
Major level: 181.25
Minor level: 180.47
Minor level: 178.91
Major level: 175.00 <
Minor level: 174.25
Minor level: 172.70
Major level: 171.89

The GLD closed at 175.66. The GLD closed .58 higher on the day.

Right at the 175 level. Watch the minor 178.91 and 174.25 levels.

The GLD is back under the midband on the 60 minute chart. This level is 178 and should be resistance.

XLE:

Minor level: 41.41
Major level: 40.63
Minor level: 39.83
Minor level: 38.28
Major level: 37.50
Minor level: 36.72
Minor level: 35.15
Major level: 34.37
Minor level: 33.59
Minor level: 32.03 **
Major level: 31.25
Minor level: 30.47
Minor level: 28.90
Major level: 28.13

The XLE closed at 34.13. The XLE closed 1.07 higher on the day.

The XLE closed just under the 34.37. Look for a move above this level and then it should be support.

The XLE is overbought now. It is above the upper band on the 60 minute chart. That level is 33.09.

AAPL:

Minor level: 140.63
Major level: 137.50
Minor level: 134.38
Minor level: 128.13
Major level: 125.00
Minor level: 121.88
Minor level: 115.63 **
Major level: 112.50
Minor level: 109.13
Minor level: 103.13
Major level: 100.00

Apple closed at 115.97. Apple closed $.35 lower.

Apple held the 115.63 level. Watch this level again today. If it can hold, it should test 125.

And look for support at 115.63.

Apple cleared the midband on the 60 minute chart. That level is 115 and should now be support.

WATCH LIST:

Bullish Stocks: GOOGL, TTD, IDXX, ALGN, LRCX, UNH, FB, QDEL, KLAC, CMI, RMD, LH, IT, HON, QCOM, FFIV, BIDU, XLNX, ZEN, MIDD

Bearish Stocks: CRI, INGR, PRU, LEG, VLO, THS, CF, FANG, HFC