November 18, 2019 - MDT Pro Tips A.M.

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

RRC Long at $11.85
Total Premium Collected $0.70

RRC Long at $9.20

RIG Long at $8.81
Premium Collected - $1.45

FEYE Long at $17.18
Total Premium Collected $0.80

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Both the long options positions expired on Friday. That was the call on XLNX and the put on DVA.

The DVA was a one-half hedge when the trade was initiated, and this was the putside of the hedge. Overall, the position was profitable, even with the bias to the short side.

On the XLNX trade, the overall loss was about .04% of the portfolio. Once again, the idea on these short term options is to take advantage of the leverage of the front week options. No question these trades are risky, which is why you never overtrade these positions.

The S & P 500 continues to move towards our target. Friday, the S & P closed at 3,120.38 or within 5 points of the 3,125 objective we have been looking for.

The close also happened to be the high for the day as well. And the low for the day was 6.40 points above Thursday's high, which means there is an open gap at Thursday's high.

The intra day range was 15.78 points. But, if you measure from Thursday's high to Friday's high, the range was 22.18 points.

I bring this up because the daily average true range is 22.01 points. And the range from high to high was right at the average.

And the day closed out at 100% of the daily bar. This certainly suggests that the high will be violated before the low.

And pre open, the S & P is trading about 5.50 points higher, so Friday's high should be taken out right at the open.

Support from Friday's daily price bar is in the 3,112 to 3,114 area.

For the week, the S & P closed 27.35 points higher.

The weekly range was only 44.56 points. This was only 64% of the weekly average true range, which is 69.23 points.

The support from last week's weekly price bar is in the 3,098 to 3,100 area.

Earnings season is starting to come to an end.

The most notable companies reporting this week are some retailers. This includes HD & TGT reporting tomorrow after the close.

And JWN and ROST reporting Thursday after the close.

Here are the Key Levels for the Markets:

$VIX:

Major level: 21.88
Minor level: 21.10
Minor level: 19.53
Major level: 18.75
Minor level: 17.97
Minor level: 16.41
Major level: 15.63
Minor level: 14.85
Minor level: 13.28
Major level: 12.50 <
Minor level: 11.72
Minor level: 10.16
Major level: 9.38

The VIX closed out at 11.94 on Friday. The VIX broke under the major 12.50 level.

Friday's high went to 12.97 or about 47 cents above the 12.50 level.

With a break under 12.50, it should now be resistance.

11.72 is a support level on the downside. And Friday's low was 22 cents above it. Watch this level. A break under it and the VIX should test 9.38.

SPX:

Minor level: 3,164.08
Major level: 3,125.00 <
Minor level: 3,085.95 ***
Minor level: 3,007.85
Major level: 2,968.80
Minor level: 2,929.73
Minor level: 2,851.58
Major level: 2,812.50
Minor level: 2,773.45
Minor level: 2,695.35
Major level: 2,656.30

The S & P closed at 3,120.38. This puts the S & P to within 5 points of our objective.

And with a projected open about 5 points higher, the objective should be taken out at the open.

3,115 should be a minor support level. And 3,134 could offer resistance on the upside.

Technical support is around 3,094.

QQQ:

Major level: 203.13
Minor level: 202.35
Minor level: 200.78 **
Major level: 200.00
Minor level: 199.22
Minor level: 197.77
Major level: 196.88
Minor level: 196.10
Minor level: 194.53
Major level: 193.75
Minor level: 192.19
Minor level: 189.06

The QQQ closed at 202.91. Friday's high was 202.91 or within 23 points of the 203.13 objective. 200.78 should continue to be support.

Technical support is around 201. And there is a support line at 198.44.

IWM:

Major level: 162.50 <
Minor level: 160.94
Minor level: 157.81 **
Major level: 156.25
Minor level: 154.69
Minor level: 151.56
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75

The IWM closed at 158.92. The target for the IWM should still be to the 162.50.

The IWM continues to hold the minor 157.81 level. If the IWM does break under this level, I would expect strong support at 156.25.

159.38 is a minor resistance level. The IWM needs to clear this level to move higher. Watch this level again today. If the IWM cannot clear it, it would signal we should see a pullback.

And 157.81 should still offer support.

Technical support is around 158.

TLT:

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: 135.84 **
Minor level: 132.81
Major level: 131.25

The TLT closed at 137.76. The TLT bounced got just above 137.50.

Watch this level. A break under this level and I would expect the pullback to continue.

To continue higher, the TLT will need to clear this level.

The minor 138.28 level should be resistance.

Short term charts remain bearish.

And the 138 area should still offer technical resistance. And 136 support.

GLD:

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 GLD closed at 138.21. The GLD managed to reclaim the major 137.50 level. If it can hold this level, it should continue to move higher.

The key level is 134.38 on the downside. If the GLD has two closes under this level, it could drop to 125.

Watch the minor 138.28 level. This should be resistance. But, a close today above it would suggest a move up to 140.

Technical support is now around 138.

XLE:

Minor level: 63.28
Major level: 62.50
Minor level: 61.72
Minor level: 60.16 **
Major level: 59.38 < Hit
Minor level: 58.60
Minor level: 57.03
Major level: 56.25
Minor level: 55.86
Minor level: 55.08
Major level: 54.69

The XLE closed at 60.08. The objective should be to 62.50.

Friday's low went to 59.80 or about 40 cents above the major 59.38 level. Watch to see if the XLE can hold this level today.

Watch to see if the XLE can clear the 60.20 area. If it can, it should head higher.

AAPL:

Major level: 281.25
Minor level: 277.35
Minor level: 269.54
Major level: 265.63 HIT!
Minor level: 261.72
Minor level: 253.91
Major level: 250.00
Minor level: 246.88
Minor level: 240.63
Major level: 237.50
Minor level: 234.38
Minor level: 228.13
Major level: 225.00

Apple closed at 265.76. Apple took out the 265.63 objective by 13 cents.

Watch for possible profit taking around this level. A long would be very high risk at this point.

The upper band is 264.55. This should now be support until it closes under it.

261.72 should offer support.

WATCH LIST:

Bullish Stocks: GOOGL, CHTR, LMT, HUM, SPY, COST, ADBE, AMGN, VRTX, QQQ, OLED, FB, GD, V, KLAC, ADP, DECK, ROKU

Bearish Stocks: AAP, ADS, TAP, IRBT, NUS, OXY, GOOS, NTGR, EBIX

Be sure to check earnings release dates.