October 10, 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
DYN Long at $12.55
Premium Collected $0.48
APA Long Oct $47.50 Call at $3.45
SNAP Long at $15.20
SNAP Short Oct 13th - $15.50 Call at $0.30
Premium Collected - $0.58
AMC Long at $15.27
AMC Short Oct $16 Call at $0.43
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With light trading because of Columbus Day, the S & P 500 sold off 4.60 points to close at 2,544.73. And from a technical perspective, the S & P had an outside day.
This is when the daily price bar has a higher high and a lower low.
Momentum, however, is still to the upside, with both short term intra day charts in uptrends.
The support area from last week's weekly price bar in the 2,536 area, should still offer strong support on a further pullback.
The negative at the moment, is that the VIX did close at 10.33. This is above the minor 10.16 level. A close above 10.16 today would imply a move up to 12.50.
I am still biased for a move down on the VIX, which would mean the S & P 500 should continue up.
Pre open, the market is trading about 4 points to the upside.
Continue to follow the resistance levels.
Here are the Key Levels for the Markets:
$VIX:
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 <
Minor level: 8.99 **
Minor level: 8.20
Major level: 7.81
The VIX closed at 10.33. 10.55 should be minor resistance.
To move lower, the VIX will need two closes under 8.99. To move higher, the VIX would need one more close above 10.16.
Minor support should be at 9.56. And minor resistance is at 10.94.
$SPX:
Major level: 2,578.10 <
Minor level: 2,558.60
Minor level: 2,548.85 **
Major level: 2,539.10 <
Minor level: 2,529.33
Minor level: 2,509.78
Major level: 2,500.00
Minor level: 2,492.20
Minor level: 2,476.00
Major level: 2,468.80
The objective is still to 2,578.
2,542.70 should still offer minor support. 2,561.00 could offer resistance on the first attempt.
QQQ:
Major level: 150.00
Minor level: 148.44
Minor level: 145.31 ***
Major level: 143.75 <
Minor level: 142.18 ***
Minor level: 139.06
Major level: 137.50
Minor level: 135.94
Minor level: 132.81
The QQQ closed at 147.49. The QQQ continues to move up to the 150 objective.
The minor support is at 147.27. 148.05 could offer minor resistance.
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 149.43. To move lower, the IWM would need two closes under 149.22.
150.78 could offer minor resistance and 148.83 is minor support.
TLT:
Major level: 131.25
Major level: 130.47
Minor level: 128.91
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 <
The TLT closed at 123.98. A close today above 123.83 and the objective becomes 125.
124.61 is minor resistance and 123.63is 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 122.08. 122.66 is minor resistance. 120.70 should be minor support.
Major resistance should be at 125.
XLE:
Major level: 71.89
Minor level: 71.11
Minor level: 69.54
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 68.21. I would not expect the XLE to drop under 67.77.
67.97 should be minor support. 68.95 could offer resistance.
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 85.33. The objective should still be down to 84.38.
85.55 should offer minor resistance. 85.16 is minor support.
AAPL:
Major levels for Apple are 165.63, 162.50, 159.38, 156.25, 153.13, and 150.
Apple closed at 155.84, up 54 cents on the day.
Apple closed above the mid band on the 30 minute chart. That level is 155.34. Watch to see if this level holds.
157.03 should also be a resistance level. And 155.08 is minor support.
WATCH LIST:
Bullish Stocks: GOOGL, LMT, NOC, SPY, MMM, GD, STZ, BA, NFLX, NVDA, CMI, AET, HON, CME, UTX, CHKP
Bearish Stocks: RL, WBA, PZZA, WOR, FL, PBH, BBBY
Be sure to check earnings release dates.
