November 22, 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

FDX Long Nov 22nd- $157.50 Call at $1.25
FDX Short Nov 22nd - $160 Call at $0.55

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There is one position that does expire today and that is the debit spread on FDX. The deal is underwater, but look for al alert if it moves in the money.

The S & P 500 ended up closing 5.02 points lower yesterday. The day closed at 3,103.44.

As I mentioned yesterday, the close percentage on Wednesday was 62% which implied that there was a slight bias for the high to be violated before the low.

And as it turned out, neither the high nor the low was violated.

The day turned out to be an inside day, where the daily bar made a lower high and a higher low.

Of course this was another contraction. The daily range was 15.56 points. The range for the day turned out to be 76% of the average.

I bring up the close percentage because for yesterday ended up at 57%.

So, like yesterday the odds slightly favor yesterdays high being violated before the low.

And with an inside day, a violation of the high could lead to a strong move.

Looking at the weekly price bar that is forming, we see that it has made a higher high and higher low. But, yesterdays close was below the open and below last weeks close.

So, there are a few pressure points to monitor today.

They are the midpoint, which is 3,109 and last weeks close of 3,120.

Finally, you do want to monitor this week's open, which is 3,118.

Yesterday's close of 3,103.44 is below all three levels, so watch the levels above on a rally.

Pre open, the S & P is trading about 3 points higher.

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 13.24 yesterday. I have been writing about the fact that I expect resistance at 13.28 on the VIX. Resistance that is until the VIX can close above it.

And yesterday, the VIX got as high as 13.86 before settling 4 cents under the level we have been monitoring.

At this point, 12.50 should be support. I would expect the VIX to drop but watch the 12.50 level on a drop. A break under it and it should continue lower.

11.72 is a support level on the downside. If the VIX breaks under it, I would expect a test of 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 3,103.44. With a close under 3,125, look for resistance at that level. And for the S & P to move higher, it would need to clear the major 3,125 level.

The minor 3,105 level should be watched today. The S & P should open just above it, so watch if it holds as support.

Technical support is around 3,107.

QQQ:

Minor level: 203.91
Major level: 203.13 HIT
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

The QQQ closed at 201.70. I do expect another run up to 203.13. And the QQQ would need to close above 202.35 to move higher.

The next minor level on the upside is 203.91. And on the downside, it is 202.35.

Technical support should be around the 202 area. If the QQQ can open above this level, look for support at this price.

And like the S & P, the QQQ formed an inside day. Watch yesterday's high of 202.07.

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 157.73. The target for the IWM should still be to the 162.50. Still lagging the SPX and the QQQ.

156.25 should be support.

If the IWM can close above 157.81 today, it would confirm the move up to 162.50. It didn't, so it will need to reclaim this level.

Technical support is around 157.20.

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 139.72. I would consider the 140.63 level to be hit.

The next minor level is 141.41. Two closes above this level and the TLT should continue higher. And at this point, if the TLT can close under 139.85 today, it should drop to 137.50.

And the 139 to 140 area should still offer technical 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. Like the TLT, the GLD is starting to fail. Watch to see if the GLD breaks under 137.50.

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

Short term, there is technical resistance at 140. And technical support is around 136.

XLE:

Minor level: 63.28
Major level: 62.50
Minor level: 61.72
Minor level: 60.16
Major level: 59.38 <
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 60.03. The XLE took out the 59.38 level as expected.

At this point, if the XLE has two closes above 60.16, it should move up to 62.50.

58.60 should now be support. And the 59.40 area should offer technical support.

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

Apple closed at 262.01. Apple will need two closes under 261.72 to drop to 250.

Watch for a retest of the major 265.63 level. It will need to get back above this elvel to move higher. If it fails, there could be a strong pullback.

Technical support should be in the 260 area.

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.