October 12, 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

AMC Long at $15.27
AMC Short Oct $16 Call at $0.43

THC Long at $14.63
THC Short Oct $15 call at $.40

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After Tuesday's near perfect doji, the S & P 500 opened yesterday near the close. the market dropped to a low of 2,547.95 before finding support.

After finding support, the S & P 500 climbed all day to hit a high of 2,555.24.

At this point, the market is within 23 points of the 2,578.10 objective.

The VIX continues to help us determine if the move in the markets should continue. The VIX hit a high of 10.28 before selling off. As I mentioned yesterday, the 10.16 level in the VIX should still be resistance and it was.

Daily support should be in the 2,552 area. And support from last week's weekly price bar is in the 2,536 area

Pre open, the market is trading about 5 points to the downside.

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 9.85. At this point, I would still expect resistance in the 10.16 to 10.55 area.

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.

$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. 2,548.80 should offer support.

2,561.00 could offer resistance. Short term momentum remains bullish.

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 148.04. The QQQ continues to move up to the 150 objective.

The minor support is still at 147.46. 148.83 could offer minor resistance. Short term momentum remains bullish.

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 149.75. To move lower, the IWM would need two closes under 149.22.

151.56 could offer minor resistance and 148.44 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 124.41. The high for the day was 124.66, just 34 cents under the 125 level.

125 is minor resistance and 123.44 is 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 122.79. 123.44 is minor resistance. 121.09 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 68.43. The XLE is holding above the midband, which is 67.74.

68.07 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 85.47. The objective should still be down to 84.38.

85.55 should offer minor resistance. 84.96 is minor support.

AAPL:

Major levels for Apple are 165.63, 162.50, 159.38, 156.25, 153.13, and 150.

Apple closed at 156.55, up 65 cents on the day.

Apple closed above the mid band on the 30 minute chart. That level is 155, which should now be support. The 30 minute chart crossed into an uptrend.

Momentum is shifting to the upside.

157.03 should also be a resistance level. And 155.08 is minor support. 154.30 should be 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.