November 20, 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

THC Long at $14.63
Premium Collected - $1.95

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The short $15 call on AMC expired on Friday. At this point, you should have collected $.98 per share by selling calls. Hold for now.

Friday, the S & P 500 pulled back after the strong day on Thursday. For the day, the S & P 500 closed down 6.79 points. It closed at 2,578.85. It still managed to close above the major 2,578.10 level.

For the day, the S & P 500 formed an inside day. This is a price bar with a lower high and a higher low.

Typically, you can expect a range expansion after an inside day.

For the week, the S & P 500 closed down 3.45 points. And the range for the week was 32.64 points. The weekly average true range is 32.52, so the weekly range was virtually the average.

Support from last week's weekly price bar is in the 2,574 to 2,578 area.

The markets did diverge last week. The NASD Composite and the QQQ both closed to the upside, while the DOW and S & P 500 closed down.

2,597.65 is the confirming line up to 2,656.30. The major 2,656.30 level should be difficult to break through on the first attempt. In fact, how the market reacts at that level should tell us what to expect.

The markets are closed this Thursday due to the Thanksgiving Holiday here in the States. And Friday is a shortened trading day with the markets closing at 1:00 EST.

Earnings continue this week. PANW reports Tuesday after the close.

And DE reports Wednesday before the open.

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 11.43 on Friday. At this point, the 10.94 level is the key level to watch.

If the VIX closes under 10.94 for two days, I feel it could drop to 9.38 and possibly 7.81.

Of course, a drop to 7.81 would be historic, but I do feel it would be possible if that should occur.

12.50 should still be major resistance.

$SPX:

Minor level: 2,626.98
Major level: 2,617.20
Minor level: 2,607.43
Minor level: 2,587.88 <
Major level: 2,578.10 **
Minor level: 2,568.35
Minor level: 2,548.85
Major level: 2,539.10
Minor level: 2,529.33

The S & P 500 is holding above the 2,578.10 level. If it breaks under that level, I would expect support at 2,568.35.

To move higher, The S & P 500 will need two closes above 2,587.88.

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 153.95, closing above the minor 153.91 level, again.

With the QQQ closing above 153.91, the target should now be 156.25.

153.13 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 148.45. A close today above 147.66 and the IWM should move up to 150.

146.66 should now be minor support. If that does not hold, I would expect 146.88 to.

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 126.39. A close today above 125.78 and the TLT should test 128.

125.78 should now be support. And 127.34 is minor resistance.

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 122.86. With close above 122.66 today, the GLD should test 125.

I still expect major resistance at 125. 121.88 should now be 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 67.43, back above the 67.19 major level. As I mentioned, support should be at 67.19.

Watch to see if this holds.

The XLE will need to clear 67.81 to move higher.

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 85.67. Moved up as expected.

85.16 is minor support. 86.33 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 170.15. 169.53 is minor support and 171.88 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, AVGO, BA, ALGN, BABA, FB, MCD, HON, ACN, CME, CLX, RHT, CBOE, WDAY, WDC, VLO, SPLK, AABA

Bearish Stocks: GS, UHS, TSRO, TAP, GWR, BG, MMP, SRCL, PZZA, APC, WES, WOR, WOR, ACM

Be sure to check earnings release dates.