November 29, 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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Target hit. Again!

Starting to sound like I am repeating myself. But, the S & P 500 keeps confirming to the upside, so we stay long. We don't try and outside the market and short. Let the gamblers do that.

The active objective was to the 2,617.20 line. Not only did the S & P 500 take out that level, but it took out the next upside confirming line, which is 2,626.98.

This now implies that if the S & P 500 closes above 2,626.98 today, the new objective becomes 2,656.30.

I do want to mention that yesterday's price action followed the doji bar from Monday. The market can expand after that price formation and that is what happened. The range for the day was 22.25 points. Compared to an average true range of 13.40, yesterday's range was 166% of the average.

Yesterday's range was the first daily range over 20 points since November 9th, when the range was 20.17.

I also mentioned this yesterday ... "The violation of the high or the low will typically tell you which way the next minor move will be."

For you intra day traders this meant that when the S & P 500 gapped up and took out Monday's high, the logic was to go long. With the range expansion, you were well rewarded.

I haven't mentioned earnings in a while, but yesterday there were two companies with large moves.

The first was THO, which was up $18.29 or 13.42%.

And the second was MOMO. MOMO dropped $5.89. That was a drop of 18.83%.

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

The VIX closed 10.03. This of course is a divergence. A divergence in the fact that both the VIX and the S & P closed to the upside.

The high for the day was 10.32, just above the minor 10.16 resistance level.

To move up to 10.94, the VIX would need two closes above 10.16. At this point, 10.16 should still be resistance.

If the VIX does break the 10.94 level, I would expect strong resistance at 12.50.

On the downside, the minor 8.59 level has held as support the first time it was tested.

$SPX:

Major level: 2,656.30
Minor level: 2,646.53
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

Objective hit! A close today above 2,626.98 and the new objective becomes 2,656.30.

2,617.20 should now be support.

Minor support is at 2,612.30 and 2,600.10.

QQQ:

Major level: 162.50
Minor level: 160.94
Minor level: 157.81 **
Major level: 156.25 < Hit
Minor level: 155.47
Minor level: 153.91
Major level: 153.13
Minor level: 152.35
Minor level: 150.78
Major level: 150.00

The QQQ closed at 156.59. The QQQ closed just above the 156.25 objective.

Next level on the upside is 157.81. Two closes above that level and the QQQ should run up to 162.50.

Minor support is at 155.47. 157.81 could offer minor resistance on the first attempt.

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 152.86. The IWM will now need two closes above 150.78 to move higher. A close today above 150.78 and the objective is 153.13. However, yesterday, the IWM came within 50 cents of the objective already.

At this point, support should be a 151.56.

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

The TLT closed at 126.79. A close today above 125.78 and the objective should be to 128.13.

And 127.74 is minor resistance. 126.56 should be minor support.

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 122.81. To move higher, the GLD will need two closes above 122.66. The GLD should test 125.

125 should offer resistance. And minor resistance is at 123.44.

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 <

After stopping exactly on the 67.19 line on Monday, the XLE had the bounce we were looking for.

The XLE closed at 67.71. If the XLE can close above 67.71 today, it should test 68.75.

If the XLE breaks under 67.19, look for a drop to 65.63.

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 86.13.

Major support is at 85.94. If the FXY takes out 86.72, look for a move up to 87.50.

AAPL:

Major levels for Apple are 175, 171.88, 165.63, 162.50, 159.38, and 156.25.

Yesterday, Apple closed at 173.07.

172.66 should be minor support. 176.56 is minor resistance.
Short term momentum remains bullish.

WATCH LIST:

Bullish Stocks: NTES, AVGO, BA, SPY, BDX, STZ, ILMN, WYNN, ACN, DE, MA, CLX, RHT, WDAY, CBOE, LULU, VTR, CCL

Bearish Stocks: GS, MLM, AYI, TSRO, WAB, AIG, PZZA, WIX, PAG, OTEX, TBT, EPD, AR

Be sure to check earnings release dates.