November 12, 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.

Yesterday, I suggested a new position on CTXS. The trade structure was a call debit spread trading the December 4th strike. Risk is limited to 1% of the portfolio, with a maximum gain of 150%.

After the pause yesterday, the S & P 500 closed 27.13 points higher. The day closed out at 3,572.66.

But, the daily price bar did contract. The range for the day was only 24.16 points. This was less than 40% of the daily average true range, which is now 65.76 points.

The daily bar formed another doji bar. But, yesterday did close above the high from Tuesday.

The levels to watch for today should be the high, close and low once again.

These levels are 3,581.16, 3,572.66 and 3,557.00.

Pre open, the S & P about 17 points lower. This projects to an open around 3,555 or about 2 points below yesterday's low of 3,557.

Watch to see if the market can reclaim yesterday's low.

If it can't, the market should continue lower.

Watch for support around the 3,545.53 level. This is the close from Tuesday's doji bar.

Short term charts remain bullish, so I do expect support to come in. The question is where?

The S & P hit the upper band on its 60 minute chart on the 9th, indicating a short term overbought condition.

A pullback to the midband, which 3,416. This level is over 100 points away from the market. This shows you how far the market could drop without impacting the uptrend.

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. This level is around the midband.

PDD reported and is trading about $26 higher. And WIX reported and is trading about $4 lower.

After the close today, 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 23.45. The VIX closed 1.35 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 is still under the midband on the daily chart. The midband is 28 points and should still 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 3,572.66. The S & P closed 27.13 points higher.

Watch the 3,554.55 level. The market should open right around this level. Watch to see if it can hold.

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

A break under 3,554 and the S & P could test 3,476.

The 3,520 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 289.76. The QQQ closed 6.34 higher.

Watch the minor 285.94 level for resistance. And it held yesterday. the low for the day was 285.53. This level should still be support.

And if the QQQ can close above 289.06 today, it should test 293.75.

Like the S & P, the QQQ took out the midband on the 60 minute chart. This level should now be support. The midband is 282.

288 should be support from yesterday's daily bar.

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 172.63. The IWM closed .07 lower 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 176.30.

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 155.72. It closed .56 higher. The TLT closed under the 156.25 level.

The TLT would still be two closes under 155.47 to drop.

The TLT is oversold and is at the lower band on the 60 minute chart. That level is 153.84.

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 174.90. The GLD closed .76 lower on the day.

First close under 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. A drop to the lower band, which is 173 should be the objective.

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 33.78. The XLE closed .35 lower on the day.

The XLE needs to hold the 33.59 level to continue higher.

But, the XLE is overbought. It is above the upper band on the 60 minute chart. That level is 33.46.

A sell off under this level and the XLE should drop to around 30.

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 119.49. Apple closed $2.52 higher.

Apple held the 115.63 level. Watch this level again today. A close today above it, and it should test 125.

And look for support at 115.63. And technical support around 118.

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