November 17, 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 - $1.40

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

 

Before I begin, I need to mention that there is one open position that expires today. And that is the short $15 call on AMC. AMC is trading under the strike and the calls should expire after the close today, allowing you to book the profit on them.

Also, you should have closed out next week's calls on THC yesterday.

Yesterday, the S & P 500 reversed and closed 21.02 points to the upside. It closed at 2,585.64.

This once again demonstrates that when the short term charts are bullish, your best bet is to trade to the longside.

Another way to look at this is that this is still not the time to short. I have not mentioned this in a while, because I felt I was beginning to sound redundant.

But, it does bear repeating because I know it can be tempting.

After gapping up yesterdat at the open, the market continued to trend up all day.

The intra day range for the day was 17.14 points. But, from close to the close, the move was 21.02 points.

Considering the average true range is 14.39 points, yesterday certainly qualified as a range expansion.

After a long range day, I would not be surprised if the market contracted today.

Earnings continue to dominate. Walmart was up 10.9% off their earnings yesterday. And NTAP jumped 15.9%.

Support from yesterday's daily price bar should be in the 2,579 to 2,582 area.

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 <

The VIX close at 11.77 yesterday, just 5 cents above the minor 11.72 level I mentioned yesterday.

The high for the day was 12.52 and the VIX continued to break under the 12.50 level all day.

Look for minor resistance at 12.11. And support at 10.16.

$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 for support at the minor 2,583 level. If the S & P breaks under that level, I would expect 2,576.90 to hold.

A retest of last week's high of 2,597 could be possible today.

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 154.54, closing above the minor 153.91 level. To move up to 156.25, the QQQ will need to close above 153.91 today.

153.91 should offer support. And minor resistance is at 155.47.

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 147.77, closing above the major 147.66 level.

146.88 should now be minor support. And look for the IWM to move up to 149.

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 125.46, closing just above the 125 level.

At this point, 125 should be support. So, a break under that level would indicate the TLT should head lower.

Watch the 125.78 level. If the TLT can clear this level, it should head higher.

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 121.40. At this point, I expect resistance at 121.88 and 125, if the GLD breaks through 121.88.

120.70 should be minor support.

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 67.10, just 9 cents above the major 67.19 level. It closed just under the midband on the daily chart.

Watch to see if the major 67.19 holds as support. I would expect it 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 84.92. Biased for a test of 85.94.

84.77 is minor support. 85.35 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 171.10. 169.53 is minor support and 172.66 is minor resistance.

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