November 7, 2018 - MDT Pro Tips A.M.

CURRENT POSITIONS:

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OI Long Feb $19 call @ $1.70
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MDR Long @ $9.31
MDR Short Nov $10 Call @ $0.25
......................................................................................... 

If you followed the alert on CELG a few days back, you would have closed the position out today.  Profit of about 21% is booked.  I will take that ahead of the election results.

Yesterday, the S & P 500 closed 17.14 points higher.  It closed the day at 2,755.45.

This puts the S & P 500 back above the midband on the daily chart.  And it closed just above the 200 ema.  Both these averages are key technical levels.

I will show these charts and many more on today's webinar.  You should have received a separate email with the link to sign up.  I hope to see you there.

The next key level on the upside is 2,756.33.  And yesterday, the market closed about one point under it.

Two closes above 2,756.33 and the S & P 500 should test 2,793.00.

Now that certain resistance levels have been violated, they should now be support.  This includes the midpoint, which is 2,744.25.

The other support level should now be 2,744.10.  With both the midband and the resistance level within 15 cents of each other, that area should offer strong support.

And support from yesterday's daily price bar is in the 2,747 area.

The other bullish factor at the moment is that the short term 30 minute charts for all the indexes are close to crossing into uptrends.

The DOW and the S & P 500 have already crossed into uptrends.  The QQQ is very close to the bullish crossover.  And the NASD Composite is quite close as well.

Most likely, after the strong open this morning, all these timeframes should be bullish.

Pre open, the S & P 500 is trading about 21 points higher. If this holds into the open, the market should open around 2,776.  Watch for some resistance at the minor 2,780 level.

Also, on a pullback, 2,756.33 should offer support.

Earnings continue this week.  Most notably, we will hear from Square, Inc. (SQ) after the close today.

Continue to monitor the levels as I mentioned.

Here are the Key Levels for the Markets:

$VIX: 
 
Major level: 31.25
Minor level: 29.69
Minor level: 26.56
Major level: 25.00 
Minor level: 23.44 
Minor level: 20.31 
Major level: 18.75 <
Minor level: 17.19 
Minor level: 14.06 
Major level: 12.50 

The VIX closed at 19.85.  It closed 11 cents to the downside.

At this point, I would expect resistance at 20.31.  With a close under this level, it should be strong resistance.

And technical resistance is at 21.32.  The short term 30 minute chart has moved into a downtrend, indicating short term momentum is shifting to the downside.

The key short term level at the moment is 20.31.  If the VIX can get above this level, I would expect it to continue higher.  And yesterday's high was 20.60 before dropping back under 20.31.

SPX: 

Major level: 2,793.00 <
Minor level: 2,780.78
Minor level: 2,756.33 **
Major level: 2,744.10 <
Minor level: 2,731.90 
Minor level: 2,707.50 
Major level: 2,695.30 
Minor level: 2,683.10
Minor level: 2,658.70 
Major level: 2,646.50 

The minor 2,756.33 level is the key at the moment.  Two closes above this level and the S & P 500 should test the 2,793 level.

And support should now be at the 2,744.10 level.

2,749 is a short term support level. 

QQQ:  

Minor level: 179.69  
Minor level: 176.56 
Major level: 175.00  
Minor level: 173.44
Minor level: 170.31 **
Major level: 168.75 <
Minor level: 167.19 **
Minor level: 164.06
Major level: 162.50 
Minor level: 160.94
Minor level: 157.81
Major level: 156.25

The QQQ closed at 170.24.  The QQQ closed above the midband on the daily chart, which is 168.57.  This should now be support.

168.75 should offer strong support.  And if the QQQ can clear 170.31, I would expect it to head higher.

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 154.64.  The IWM is trading under the midband on the daily chart.  That level is 158.05 and should be resistance on a rally.

Look for a move up to 156.25.  But, short term resistance is at 155.47.

153.91 should offer minor support.  

TLT:  

Major level: 115.63
Minor level: 115.24
Minor level: 114.45
Major level: 114.06
Minor level: 113.67 
Minor level: 112.89
Major level: 112.50
Minor level: 112.11 **
Minor level: 111.33
Major level: 110.94

The TLT closed at 112.37.  The TLT will still need two closes under 112.11 to drop to 110.94.

The TLT is oversold and almost at the lower band on the daily chart.  The lower band is 111.14.  I do expect a bounce here.

112.50 should be resistance.  A break above and expect the TLT to move higher.

GLD:  

Major level: 118.75
Minor level: 117.97
Minor level: 116.41 **
Major level: 115.63 
Minor level: 114.85 
Minor level: 113.28 
Major level: 112.50 
Minor level: 111.72
Minor level: 110.16
Major level: 109.38 

The GLD closed at 116.04.  At this point, 116.41 should still be minor resistance. And the GLD will have to clear 116.41 to move higher.

If it can't, I would expect a drop to 115.63.

115.63 is minor support.  And 117.19 is minor resistance.  115.23 is a key level on the downside.  If the GLD closes under 115.23, I would expect a drop to 114.

XLE: 

Minor level: 72.66  
Major level: 71.88 
Minor level: 71.10
Minor level: 69.53 **
Major level: 68.75 <
Minor level: 67.97
Minor level: 66.41 
Major level: 65.63
Minor level: 64.85 
Minor level: 63.28
Major level: 62.50

The XLE closed at 69.01.    The XLE closed above the major 68.75 level. This level should be support.

The midpoint of the monthly bar is 71.36.  Watch this level on a rally. 

69.53 is minor resistance.  And 71.66 is the midband on the daily chart.

FXY:

Major level: 85.94
Minor level: 85.75
Minor level: 85.36 
Major level: 85.16 
Minor level: 84.97 
Minor level: 84.58 **
Major level: 84.38 
Minor level: 84.18 
Minor level: 83.79 
Major level: 83.59 

The FXY closed at 84.22.  Watch to see if the FXY can hold the 84.38 level.  It closed under it, so it should be resistance.  Watch how the FXY reacts at this level. 

84.77 should now be minor resistance.  83.98 should be minor support.

AAPL:

Minor level: 220.31 
Major level: 218.75 
Minor level: 217.19 
Minor level: 214.06
Major level: 212.50 
Minor level: 210.94
Minor level: 207.81 
Major level: 206.25 <
Minor level: 204.69
Minor level: 201.56
Major level: 200.00

Apple closed 2.18 higher yesterday, at 203.77.  It is right around the major 200 level.  Watch to see if this holds.  If it does, I would expect a rally.

200 is a strong support level. So, watch to see what Apple does here.  A break under it and I expect lower lows.
  
WATCH LIST:

Bullish Stocks: CME, DECK, ESL, DG, HSY, TSCO, XLNX, WBA, OMC, TRIP, TWTR, CNK, KFY

Bearish Stocks: LLL, IBM, EA, ALL, CTSH, BG, CERN, BDC, SLB, GIS, ALKS, MTDR, WDR, CLVS, INN

Be sure to check earnings release dates.