October 13, 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 20th - $16.00 Call at $.65
Premium Collected - $1.20

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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The market continues to consolidate at its highs. Since closing above 2,550, the S & P 500 has bounced above and below the 2,550 level.

Yesterday was the S & P 500 close down 4.31 at 2,550.93. This was after Wednesday close at 2,555.24.

We still have the objective for the S & P 500 at 2,578.10 and yesterday's high was within 21 points of that objective.

With the short term intraday charts for the market still in bullish formation, staying long is still the appropriate course of action.

Support from the daily price bar for the S & P 500 remains at 2,552. Pre open, the S & P 500 is trading 3.25 points to the upside.

If this price action holds until the open, the S & P should open above 2,552. Watch to see how the market reacts at this level.

The VIX continues to trade around its all time lows. It closed at 9.91, under the minor 10.16 level. The higher levels on the VIX should continue to offer resistance and help to time long entries in the market.

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 9.91. Resistance for the VIX is in the 10.35 to 10.55 area. And with a close under 10.16, that minor level should also offer 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.

$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. And 2,554.90 is the minor level to watch. This level has been the daily high for the last three days.

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

The minor support is still in the 146.88 to 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 149.64. To move lower, the IWM would need two closes under 149.22.

151.56 could offer minor resistance and 149.41 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 124.95. The high for the day was 124.98, just 2 cents under the 125 level.

125.78 is minor resistance and 123.83 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 122.89. 123.44 is minor resistance. 120.31 should be minor support.

Watch to see if the GLD can clear 123.44.

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 68.18. The XLE continues to hold above the midband on the daily chart. The midband is 67.73.

67.97 should be minor support. 69.14 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 85.58. The objective should still be down to 84.38.

85.74 should offer minor resistance. 84.34 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, down 65 cents on the day.

Support should be in the 155 area. If Apple consolidates around this level, it would offer a decent long entry.

157.81 should also be a resistance level. And 154.69 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