October 18, 2016 - MDT Pro Tips A.M.

Total Premium Collected? $1.95

ASNA Long at $14.20
Total Premium Collected $.75

DUST Long $4.50
Total Premium Collected? $.70

FCX Long $12.45
Total Premium Collected? $.24

CIEN Long Oct 21-$22 Call? $1.39
Total Premiums Collected? $.74

KR Long Jan $30 Call? $1.30
KR Short Jab $33.75 Call? (.25)

DYN Long at $12.55
DYN Short Oct $12.50 Call (.48)
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The S & P 500 ended up closing 6.48 points to the downside yesterday, at 2,126.50.? This is still 1.50 points above the major 2,125 level.

As for the VIX, it ended up closing at 16.21, up 9 cents.?

Pre open, the S & P 500 is trading to the upside 15.50 points.? Based on the pre open trading, it certainly appears that the 2,125 level will hold.

Assuming an open 15.50 points to the upside, the market should open right around the minor 2,140.62 level.? This level is the next key level to the upside because if the S & P 500 closes two days above that level, the market should retest 2,187.50.

2,153 is the mid band on the 30 minute charts and 2,156 is the midband on the 60 minute chart. So, the 2,153 to 2,156 area should offer resistance.

NFLX reported last night and is trading about 18% to the upside.?

Also, tomorrow at 12:00 EST is our webinar.? If you have any questions please feel free to email them to me at davismdt@gmail.com

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

With the market set to open higher this morning, look for the VIX to open lower.? Based on a lower open, resistance should be at 16.41.

Minor support should still be at 14.06.

$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

Minor support level to watch is 2,132.80.? And as I mentioned, watch to see if the market can get through the 2,153 to 2,156 area.? I would expect some resistance there.

For momentum to shift to the upside, the shorter term time charts need to move into uptrend formation.

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 did close above 116.41, so it should try and retest 118.75.? Look for 117.97 to offer support.

The short term 60 minute chart still remains in an uptrend, showing more strength than the S & P 500.

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

A close today above 132.03 and the TLT should test 134.38.? 131.25 should offer support.? 133.60 should offer minor resistance.

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

A close today above 119.53 and the GLD should test 121.88.? 121.88 should offer resistance.? A bounce here should be expected.

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 is trading just above the 67.96 minor support level.

Objective should be for the XLE to retest 71.88.? It will need two closes above 69.53 to confirm the move up.

FXY:

Major level: 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

The FXY reclaimed the 92.97 level and closed at 92.92.? If it can trade above 93.75, it should continue higher.? 92.19 should offer support.

AAPL:

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

Apple continues to trade just under the 118.75 level. Apple continues to drift higher. Continue to buy again
st support.? If Apple can get through 118.75, the next minor level to watch is 119.53.

WATCH LIST:

Bullish Stocks: NTES, ACN, AAPL, FANG, KS, ROST, MENT, DRI

Bearish Stocks:? REGN, AGN, BIDU, CLX, ANTM, CELG, DIS, VRTX, GILD, ESRX

Be sure to check earnings release dates.