November 9, 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 up marginally again yesterday, closing 3.74 points to the upside, at 2,594.38.

The high for the day was 2,595.47, which is about 2 points under the 2,597.65 level.

Pre ope, the market is trading to the downside about 12 points. Expect a downgap open.

This suggests that the VIX should move higher. I still expect resistance at the higher levels on the VIX.

But, as I have mentioned on a few occasions that after a major level is violated, the market often pauses or sells off at the next upside confirming line.

For the S & P 500 the major level violated was 2,578.10. And the next upside level is 2,597.65.

Short term momentum is still to the upside. This is because both the 30 minute and 60 minute charts are in uptrends.

But the support levels from the lower timeframes are about 25 to 50 points under yesterday's close.

SNAP reported and ended up closing $2.21 to the downside. It actually had moved up almost $1 off the day's low. Short term the stock is oversold and yesterday's volume is certainly a selling climax, with daily volume of 162 million shares.

The sell off was somewhat mitigated by selling this week's calls. I will be looking to sell more options against this position.

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 at 9.78. The 10.94 level should still offer resistance. Also, the minor 10.16 could offer resistance. It the VIX breaks through 10.16, look for a move up to 10.94.

Minor support is at 9.57.

$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 2,585.02, just 38 cents under the minor 2,585.40 level.

The market should open around 2,582. Watch to see if it breaks under the minor 2,580.60 level. If it does, that level should be resistance.

2,574.50 should be minor support.

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 154.50, closing just above the minor 155.47 level. 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 closed at 147.20, 20 cents on the day.

146.09 is a minor support level that should not be violated. Two closes under 146.09 and the IWM should drop to 143.75.

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 126.36. The upside objective should now be to 128.13.

125.78 should now be support.

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 121.63. The 121.88 level continue to be resistance. If the GLD get clear 121.88, it should head higher.

Minor resistance is at 122.66. And minor support is at 121.10.

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 69.82.

71.88 is the next upside level. 68.75 and 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 84.36, within two cents of 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 176.24. This was the first close above the 175 level.
Minor support should be at 173.44 and 178.13 is minor resistance.

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.