November 6, 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

DVA Long November 15th - $57.70 call for $1.80
DVA Long November 15th - $55.00 put for $1.95
DVA Short November 8th - $61.50 call for $0.80

CRM Long November 8th $157.50 call for $1.86
CRM Short November 8th $160.00 call for $0.86
CRM Long November 8th $155 put for $0.85

IRBT Long November 8th $51.50 put for $1.05

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The market pulled back slightly yesterday. For the day, the S & P closed 3.64 points lower. It closed the day out at 3,074.63.

Once again the intraday range contracted. The range for the day was only 11.80 points. This is less than one half the daily average true range, which is now 24.87 points.

As I mentioned yesterday, all these contractions around a top is usually not a bullish sign.

And yesterday made a lower high and a lower low, which is bearish. So for today, you want to keep an eye on the daily levels.

The levels you want to watch are in the 3,076 to 3,078 area.

If the market can get above this area, then it should be support. It should be resistance until then.

The other bearish scenario from yesterday is that it closed at 21% of the range of the daily bar.

This suggests that the odds favor the low being violated before the high.

The other fact that we are keeping an eye on is the VIX. As you know, the VIX is down to long term support. This is around the 12.50 level.

I did neglect to mention that on Monday, the S & P and the VIX diverged. They both closed to the upside.

This is not a perfect market timing indicator, but it does act as a warning that a change in momentum may be coming.

I do want to mention that the support from last week's weekly price bar should still be viable.

That is around 3,045 to 3,050.

This suggests that the market could pull back about 25 points in the short term without affecting the bullish trend.

Pre open, the S & P is trading about 2.50 points higher. Watch the levels I mentioned above. Assuming this trading holds up until the open, the market should open right around the level I mentioned.

This afternoon, we get earnings from BIDU, QCOM and ROKU.

And BKNG reports after the close on Thursday along with STMP and DIS.

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 13.05 yesterday. I mentioned that the 13.28 level should be resistance until the VIX closes above it.

As it turned out, yesterday's high was exactly 13.28. And after hitting the level, the VIX pulled back to close lower.

I know it may seem like magic, but you know how impactful these price levels can be.

Watch this level again today. If the VIX can clear it, it should then be support.

And two closes above 13.28 and the VIX should move up to 15.63.

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 3,074.63. Yesterday's high was just under the minor 3,085.95 level. The S & P will need to clear this level to head higher. So, watch how the market reacts at this level today.

If it clears this level, it would then be support.

3,051.80 should be support. And 3,027.

QQQ:

Major level: 203.13
Minor level: 202.35
Minor level: 200.78
Major level: 200.00 Hit
Minor level: 199.22
Minor level: 197.77 **
Major level: 196.88 <
Minor level: 196.10
Minor level: 194.53
Major level: 193.75
Minor level: 192.19
Minor level: 189.06

The QQQ closed at 200.21. The QQQ hit the 200 objective and closed just above it. Watch to see if the QQQ can move above this level.

The next minor level is 200.78. Watch to see if it clears this level and can close above it.

Technical support is around 199. And there is a support line at 196.88.

IWM:

Major level: 162.50 <
Minor level: 160.94
Minor level: 157.81 **
Major level: 156.25 Hit!
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 159.15. The target for the IWM should be to the 162.50.

159.38 is a minor resistance level. The IWM needs to clear this level to move higher. Watch this level today.

156.25 should still be a support level. And technical support is around 158.

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 137.15. The TLT hit the 137.50 objective.

At this point, the TLT is oversold. I would not expect the TLT to move above 140.63 on a bounce.

The 141 area should offer technical resistance.

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 139.85. It closed exactly on the minor 139.85 level. If the GLD closes under 139.85 today, it should drop to 137.50.

The 141 area should offer technical support.

XLE:

Minor level: 63.28
Major level: 62.50
Minor level: 61.72
Minor level: 60.16 **
Major level: 59.38 < Hit
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 61.29. This was the second close above 60.16, so the upside objective should be to 62.50.

Yesterday's high got above the midband on the daily chart, but it closed just under it. The midband is 61.44, so the close was just under it.

Technical support is still around the 59.50 area. XLE is overbought in the short term.

AAPL:

Major level: 250.00 <
Minor level: 246.88 **
Minor level: 240.63
Major level: 237.50
Minor level: 234.38
Minor level: 228.13
Major level: 225.00
Minor level: 221.88
Minor level: 215.63
Major level: 212.50
Minor level: 209.38

Apple closed at 257.13. This puts Apple above the 250 target ... and above the upper band on the daily chart.

The upper band is 256.11. This should now be support until it closes under it.

250 should offer support. And 257.81 is a minor resistance level.

WATCH LIST:

Bullish Stocks: AMZN, AVGO, NTES, MA, ASML, AAPL, ZBRA, PANW, GS, RTB, OLED, FB, V, AGN, HON, DE, DECK, URI

Bearish Stocks: ANET, TWLO, XLNX, CHRW, LOGM, ALB, TAP, FIZZ, CIEN

Be sure to check earnings release dates.