November 2, 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.

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The S & P 500 closed marginally to the upside yesterday. For the day, it was up 4.10 points. It closed at 2,579.36.

The close was about one point above the major 2,578.10 level. However, for the day, the market closed under its midpoint.

And the VIX also closed to the upside. So, there was a divergence yesterday, with both the VIX and the S & P 500 both closing to the upside.

The VIX closed at 10.24, which is still below the resistance levels I have outlined this week.

I would still expect higher levels in the VIX to offer resistance.

Yesterday was the first close above the major 2,578.10 level. This now sets up a scenario where if the S & P 500 can close above that level today, I do feel the market can go significantly higher.

Ultimately I feel the S & P 500 can go to 2,812. I know that is over 200 points above the market right now, but quite frankly, that should be the objective if it can close for two days above 2,578.10.

Obviously, the market will not go straight up, there will be the usual pullbacks along the way. In fact, I would expect some resistance at 2,656.

I tend not to bet against the resistance levels I share. Similar to fighting against the extreme bollinger bands, which I never do.

TSLA is set to open lower after reporting and FB is down slightly after reporting.

This afternoon, after the close, we will hear from Apple and CRUS, among other companies reporting.

Continue to follow the resistance levels.

Here are the Key Levels for the Markets:

$VIX:

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 <
Minor level: 8.99
Minor level: 8.20
Major level: 7.81

10.94 should still be resistance. Minor support should be at 9.77.

I still expect a retest of 9.38.

$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: 2,484.38

Yesterday's high was 2,588.40, before the market pulled back to close just above 2,578.10. As I mentioned above, a close today above 2,578.10 would be very bullish and sets in motion a situation for the market to move higher.

2,573.20 is minor support and 2,592.80 is minor resistance.

Short term momentum still remains bullish.

QQQ:

Major level: 153.13 <
Minor level: 152.35
Minor level: 150.78 ***
Major level: 150.00
Minor level: 148.44
Minor level: 145.31
Major level: 143.75
Minor level: 142.18
Minor level: 139.06
Major level: 137.50

The QQQ closed at 152.10. The objective should still be to 153.13.

Minor support is at 151.56 and 150.78. Look for resistance at 154.69.

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 148.27. 148.83 should now be minor resistance. And a retest of 146.88 would not be out of the question.

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 jumped, closing at 124.75. This puts the TLT within 25 cents of the 125 level.

I still expect strong resistance at 125. If the TLT does break through 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 121.11. At this point, 121.88 should be resistance. If 121.88 is violated, major resistance should be at 125.

Resistance is at 121.29. And minor support is at 120.70.

XLE:

Minor level: 69.14
Major level: 68.75
Minor level: 68.36
Minor level: 67.58
Major level: 67.19 <
Minor level: 66.80
Minor level: 66.02
Major level: 65.63
Minor level: 64.85

The XLE closed at 68.68. The XLE closed above the mid band, which is 67.74. This level should now be support.

68.36 is minor support. And 69.14 is minor resistance.

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 84.14. The FXY broke under the 84.38 level, which indicates it should head lower.

82.81 should offer minor support. And 84.38 should now offer minor resistance.

AAPL:

Major levels for Apple are 165.63, 162.50, 159.38, 156.25, 153.13, and 150.

Apple reversed yesterday and close down 2.15 on the day. Watch the 162.50 and 165.63 support levels.

Apple does report this afternoon, after the close. Do not trade ahead of earnings.

WATCH LIST:

Bullish Stocks: AMZN, GOOGL, NTES, ALGN, AVGO, MMM, UNH, NVDA, NFLX, AAPL, APD, ITW, CAT, MAN, DE, DATA, MSFT

Bearish Stocks: ULTA, AYI, UHS, DPS, AAP, TAP, PZZA, WBA, TSCO

Be sure to check earnings release dates.