November 8, 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
Short Nov 10th - $15.50 call @ ($0.96)

AMC Long at $15.27
Premium Collected - $0.98
Short Nov $15 call @ (0.55)

THC Long at $14.63
Premium Collected - $1.65
Short Nov 10th - $14.50 call @ ($0.85)

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The S & P 500 moved marginally yesterday, closing .49 points to the downside, at 2,590.64.

The market is struggling to clear the next upside confirming line, which is 2,597.65.

Having said that, if the S & P 500 can close above the 2,597.65 level, I do believe it heads up to 2,656.30. At least that would be the next objective.

At this point, 2,500 should be a strong support level. And I would expect support at the major 2,578 level as well.

The VIX should help to determine if and when this market should pullback.

As you know, the VIX ias at historic lows and closed under the 9.38 level for the first time.

Yesterday, the VIX popped up to close at 9.89, up 5.21% for the day.

This is still below the 10.16 level. This is the short term level to watch on the VIX because if the VIX closes above 10.16 for two days, it should move up to 10.94.

I would still expect resistance on the VIX at the 12.50 and 10.94 levels.

Both AMC and THC closed slightly higher after reporting yesterday. I will contiue tos suggest selling calls on both these stocks.

SNAP reported and had a miss on revenue and is trading about $1.80 to the downside. This is the reason I suggested closing last week's short calls and rolling out to this week ... especially when we could collect over $1.00 per share.

SNAP should be oversold short term based on how it should open this morning. I will continue to suggest selling call options on this position.

PCLN reporting yesterday and was off $257 or 13.52%. This was largest dollar move I have ever seen.

TRIP was down 23%. On a percentage basis, it was a larger move than PCLN.

Based on how these stocks trade after earnings, I will continue to make adjustemnts.

Continue to follow the resistance levels.

Here are the Key Levels for the Markets:

$VIX:

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 <

With the VIX closed above the 9.38 level, at 9.89. The 10.94 level should still offer resistance. A move up to 10.55 could be possible.

To move lower, the VIX needs to close two days under 8.99.

Minor support is at 8.59.

$SPX:

Minor level: 2,675.83
Major level: 2,656.30
Minor level: 2,636.75
Minor level: 2,597.65 <
Major level: 2,578.10 **
Minor level: 2,558.58
Minor level: 2,519.53
Major level: 2,500.00
Minor level: 2,484.3

Yesterday's low was 2,584.35, just five cents under the minor 2,585.40 level. Look for this level to offer support again. If it is violated, the S & P could drop to 2,473.

Short term momentum still remains bullish.

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 153.88, closing above the next upside confirming line again. The objective should be to the 156.25 level.

153.13 should continue to be support.

IWM:

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
Major level: 143.75
Minor level: 142.97

The IWM broke and closed at 147. This is just above the 146.88 level.

146.09 is a minor support level that should not be violated. If it is, expect the IWM to move lower.

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 126.64. The upside objective should now be to 128.13.
125.78 should now be support.

The 60 minute chart crossed into an uptrend, so short term momentum has turned bullish.

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 121.21. The 121.88 level continue to be resistance.

Minor resistance is at 122.27. And minor support is at 120.31.

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 70.16, within 16 cents of the 70.31 level.

71.88 is the next upside level. 69.53 should now be support.

The 30 minute chart has crossed into an uptrend, so short term momentum is shifting to the upside.

FXY:

Major level: 89.06
Minor level: 88.67
Minor level: 87.89
Major level: 87.50
Minor level: 87.11
Minor level: 86.33
Major level: 85.94 <
Minor level: 85.55 ***
Minor level: 84.77
Major level: 84.38 <

The FXY closed at 84.27, just 11 cents under the major 84.38 level.

Low risk long entry with a stop just under the 84.38 level.

The FXY is trying to find support before it makes a bounce.

AAPL:

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

Yesterday's high was 175.25, 25 cents above the 175. And Apple closed at 174.81, just 19 cents under the major level.

171.88 should be support. Watch to see if Apple can close above 175. If it can, it should higher.

WATCH LIST:

Bullish Stocks: AMZN, GOOGL, AVGO, ALGN, BDX, STZ, NVDA, FLT, AAPL, OLED, MA, CME, DE, ALNY, SWKS, WDAY, MSFT

Bearish Stocks: TSRO, EXP, GPC, AAP, ABC, SRCL, ALK, SLB, PZZA, ALKS

Be sure to check earnings release dates.