November 22, 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 - $1.40

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The S & P 500 broke out to new highs yesterday, closing at 2,599.03. It closed up 16.89 points.

Yesterday is the perfect example of why I continue to say you do not want to short this market.

And with a close above 2,587.88, this now sets up a scenario where if the S & P 500 can close above that level today, the objective should be to 2,617. Considering we are only about 17 points from that objective, the question is do we hit today?

On a larger timeframe, 2,597.10 is a key price level. A close today above that level implies a move up to 2,656.

The VIX closed under the 10.94 level again. It closed at 9.73, just 35 cents above the major 9.38 level.

At this point, a break under 9.38 is possible ... and would not shock me.

In fact, at this point I expect it. But, I could be wrong. At least you are aware of where possible support on the VIX could be.

Pre open, the S & P 500 is trading about one point to the upside.

Support from yesterday's daily price bar should be in the 2,595 area.

Tomorrow, the markets are closed here in the United States because of the Thanksgiving Holiday. And Friday, the markets have a shortened session, closing at 1:00 EST.

I trust and hope you have a wonderful Thanksgiving! And thank you for being a member.

And finally, Friday I will not publish the daily update due to the expected slow trading session. I plan to take a day off and I suggest you do the same.

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 9.73 yesterday. Now that the VIX has closed under 10.94 for two days, it sets up a scenario where the VIX could drop to 7.81 or possibly 6.25.

However, 9.38 has been strong support. Watch if the VIX can break under this level.

8.59 should be minor support and 10.55 minor 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

A close today above 2,587.88 and the objective should be up to 2,617.

2,595 should be short term support. If it is violated, look for short term support at 2,589.10.

On the upside, 2,613 could offer minor resistance.

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 155.50. The QQQ is within 75 cents of the 156.25 objective.

155.08 should offer short term support. And minor resistance is at 157.81.

IWM:

Major level: 153.13 **
Minor level: 152.35
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

The IWM closed at 151.09. The IWM took out the 150 target.

This now sets up a scenario where if the IWM can close above 150.78 today, the objective should be to 153.13.

150 should now 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 126.74. The TLT is now within 1 point of the 128 objective.

126.56 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 121.51. With the GLD breaking under the 121.88, it should now be resistance.

The GLD has now had two closes under 121.88. This sets up a scenario where the GLD could drop to 112 to 115 area.

Higher levels 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 67.42, closing for the third day above the 67.19 major level.

67.19 should still be support.

Also, the XLE needs to clear the midband, which is 67.79 to move higher. And finally, two closes above 67.58 would confirm a move up to 68.75.

FXY:

Major level: 85.94
Minor level: 85.75
Minor level: 85.36
Major level: 85.16 <
Minor level: 84.96
Minor level: 84.55
Major level: 84.38

The FXY closed at 85.38. A close today above 85.16 and the FXY should move up to 85.94.

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 173.14. At this point, 171.88 should be support.

With both the 30 & 60 minute charts in uptrends, buying is the best course of action, as opposed to shorting. Another example of not going against the short term momentum.

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.