October 14, 2016 - MDT Pro Tips A.M.

Total Premium Collected? $1.95

ASNA Long at $14.20
Total Premium Collected $.75

DUST Long $4.50
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FCX Long $12.45
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CIEN Long Oct 21-$22 Call? $1.39
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KR Long Jan $30 Call? $1.30
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DYN Long at $12.55
DYN Short Oct $12.50 Call (.48)
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The S & P 500 retested the 2,125 level, as expected.? The market took out that level and hit a low on the day at 2,114.72.

As I mentioned yesterday, a bounce should have been expected because the market was going to trade at the lower extreme bands.? As it turned out, the S & P 500 broke under the lower band on the 30 minute chart, and stopped right at the lower band on the 60 minute chart.

The end result was, after opening at 2,130.26, the market ended up closing at 2,132.55, or about two points higher.? On the daily chart, it formed a hammer bar, which is bullish.

And as you know, it was able to reclaim the major 2,125 level.

The trigger to buy was based on the oversold condition and the VIX reversing to the downside.

I mentioned to watch the 16.41 level on the VIX.? The VIX did open above it at 16.88, and ran up to a high of 17.95, which happens to be one cent under the 17.96 resistance level, before pulling back.? The VIX was also above the upper extreme Bollinger band on its 30 minute chart.

On its 60 minute chart, the VIX stalled just under the upper band.

Pre open, the S & P 500 is set to open about seven points to the upside. This would mean an open around 2,139, or just under the minor 2,140.62 level.

It would also mean an open above yesterday?s high, so I would expect 2,132 to offer support.

The key for today will be to see if the S & P can reclaim the 2,140.62 level.

Earnings for a few major banks have come in positive which should also help to fuel the market today.

Continue to monitor the levels for entry points.

Here are the key levels for the markets:

$VIX:

Major level - 18.75
Minor level - 17.96
Minor level - 16.41 *
Major level - 15.63 *
Minor level - 14.85
Minor level - 13.28
Major level - 12.50
Minor level - 11.72

Yesterday?s high stalled one cent under the minor 17.96 level. It did close above 16.41, so if the VIX does close above 16.41 today, it should test 18.75.

However, it will most likely open under the 16.41 level, so I would expect that level to offer resistance.? Watch to see if the VIX fails at 16.41.

$SPX:

Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12
Major level - 2,187.50
Minor level - 2,171.88 *
Minor level - 2,140.62 *
Major level - 2,125.00
Minor level - 2,109.38
Minor level - 2,078.12
Major level - 2,062.50

2,125 should still be major support.? Minor level to watch is 2,132.80.

The key for today is if the S & P 500 can close above 2,140.? 2,156 should offer resistance.

QQQ:?

Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75 *
Minor level - 117.97 *
Minor level - 116.41 *
Major level - 115.63 *
Minor level - 114.84
Minor level - 113.28
Major level - 112.50

The QQQ held just above the 115.63 level, which was the level I mentioned should be support.? The low for the day was 115.94.

Watch the 116.41 level today. A close today above that level and the QQQ should retest 118.75.

TLT:?

Major level - 137.50
Minor level - 136.72
Minor level - 135.16
Major level - 134.38 *
Minor level - 133.60 *
Minor level - 132.03 *
Major level - 131.25
Minor level ? 130.46
Minor level ? 128.91
Major level ? 128.13

?The TLT closed at 133.46 yesterday. Resistance should be at 133.60.

GLD:

Minor level - 124.22
Minor level ? 122.66
Major level ? 121.88
Minor level ? 121.10
Minor level ? 119.53 *
Major level ? 118.75
Minor level ? 117.97

121.8 should continue to offer resistance. Look for a move lower to possibly 112.

XLE:

Major level - 75.00
Minor level - 74.22
Minor level - 72.66
Major level - 71.88
Minor level - 71.10 *
Minor level - 69.53
Major level - 68.75 *
Minor level - 67.96
Minor level - 66.41
Major level - 65.63

The XLE stopped at 69.29 yesterday, before reversing to close at 70.21.? This was just above the anticipated support level of 68.75.

A close today above 69.53 and the XLE should retest 71.88.

FXY:

Major l
evel: 96.88
Major level: 96.09
Major level: 95.31
Major level: 94.53 *
Major level: 93.75 *
Major level: 92.97
Major level: 92.19

93.75 should be resistance for the FXY.? Watch the 92.97 level.? Two closes under the that level and the FXY could drop to 90.

AAPL:

Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75, and 87.50.

Apple held the 115.63 level.? A close today above 116.41 and Apple should test 118.75.

WATCH LIST:

Bullish Stocks: PCLN, AMZN, NTES, FLT, CXO, CMI, EW, ADBE, DE, LLY, JPM, CAB, ROST, LVS, CLR, AZPN, PTC, WGO

Bearish Stocks:? REGN, CI, DPS, VRTX, GILD, SRCL, CRM, NKE, UA, ALNY, VRX

Be sure to check earnings release dates.