November 16, 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

SNAP Long at $15.20
Premium Collected - $2.79

AMC Long at $15.27
Premium Collected - $0.98
Short Nov $15 call @ (0.55)

THC Long at $14.63
Premium Collected - $1.95
Short Nov 24th - $14.50 call @ ($0.35)

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The S & P 500 finally broke under the major 2,578.10 level, closing 14.25 points to the downside, at 2,564.62.

The market actually traded below the downside level of 2,558.58, before recovering to close above that level. The low for the day was 2,557.45, or about 1 point under the downside level.

After breaking through the major 2,578.10 and stalling at the next upside level of 2,597.65, the downside level will often act as support. And yesterday that level ws tested.

Support from yesterday's daily price bar should be in the 2,565 to 2,567 area.

As for the VIX, it actually ran higher than I expected. It hit a high of 14.51 before selling off. It closed at 13.13, or 63 cents higher than I expected. I was looking for 12.50 to be resistance and now that it is above it, it should be support.

12.89 is the minor level to watch on the VIX. This is because if the VIX closes above that level, it should run up to 14.06 again.

Pre open, the S & P 500 is trading about 8 points to the upside, so the market should open with a bullish gap.

Yesterday's high of 2,572.84 should offer support.

Continue to follow the resistance levels.

Here are the Key Levels for the Markets:

$VIX:

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: 10.16
Major level: 9.38 <

11.72 is the level to watch on the downside. If the VIX breaks under that level, it should head down.

On the upside, watch to see if the VIX can get above 13.28. If it does, it should continue higher.

The VIX should open lower based on the S & P trading to the upside before the open.

$SPX:

Minor level: 2,675.83
Major level: 2,656.30
Minor level: 2,636.75
Minor level: 2,597.65 <
Major level: 2,578.10 **
Minor level: 2,558.58 <
Minor level: 2,519.53
Major level: 2,500.00
Minor level: 2,484.3

Watch the 2,568.40 level today. For the S & P 500 to head higher, it will need to close above this level today. A close under that level implies a drop to 2,550.

Minor resistance is at 2,574.50.

QQQ:

Major level: 156.25
Minor level: 155.47
Minor level: 153.91 **
Major level: 153.13 < Hit
Minor level: 152.35
Minor level: 150.78
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75

The QQQ closed at 152.59, just above the minor 152.35 level. To move lower, the QQQ will need two closes under 152.35.

152.34 should offer support. And minor resistance is at 153.91.

IWM:

Minor level: 150.78
Major level: 150.00
Minor level: 149.22
Minor level: 147.66 ***
Major level: 146.88 <
Minor level: 145.32
Minor level: 144.53
Major level: 143.75
Minor level: 142.97

The IWM closed at 145.63. Once again, the IWM closed just under the major 146.88 level.

To move lower, the IWM would need two closes under 145.42.

144.53 should be support.

TLT:

Major level: 128.13
Minor level: 127.35
Minor level: 125.78 **
Major level: 125.00 <
Minor level: 124.61
Minor level: 123.83
Major level: 123.44
Minor level: 123.05
Minor level: 122.27
Major level: 121.88

The TLT closed at 126.56, closing above the 125 level.

Closing above 125 indicates the TLT should head higher. And two closes above 125.78 would confirm this.

Minor support is at 124.61. Minor resistance is at 127.34.

GLD:

Minor level: 125.78
Major level: 125.00
Minor level: 124.22
Minor level: 122.66
Major level: 121.88 <
Minor level: 121.10 ***
Minor level: 119.53
Major level: 118.75

The GLD closed at 121.41. Watch the 121.88 level. If the GLD gets through 121.88, it should head higher.

At this point, 125 should be resistance.

XLE:

Major level: 73.44
Minor level: 72.66
Minor level: 71.09
Major level: 70.31
Minor level: 69.92
Minor level: 69.14 **
Major level: 68.75 <
Minor level: 68.36
Minor level: 67.58
Major level: 67.19

The XLE closed at 67.37. It closed just under the midband on the daily chart.

Watch to see if the major 67.19 holds as support. I would expect to.

FXY:

Major level: 89.06
Minor level: 88.67
Minor level: 87.89
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 <

The FXY closed at 85.10. A close today above 84.77 and the FXY should test 85.94.

84.96 is minor support. 85.55 is minor resistance.

AAPL:

Major levels for Apple are 175, 171.88, 165.63, 162.50, 159.38, and 156.25.

Yesterday, Apple closed at 169.08. A close today under 170.32 implies a move down to 165.63.

I would expect support at 168.75.

With both the 30 & 60 minute charts in uptrends, buying is the best course of action, as opposed to shorting.

WATCH LIST:

Bullish Stocks: AMZN, NTES, ALGN, NVDA, AAPL, WYNN, MA, RCL, VMW, V, CRM, WDC, D, SPLK, LULU, FSLR, NKE, WGO

Bearish Stocks: AGN, WHR, UHS, UHS, TSRO, SRCL, ALK, PZZA, DVA, DAL, ALKS

Be sure to check earnings release dates.