October 20, 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 $0.65
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 $0.40

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Before I begin, I need to mention that there are a number of calls expiring today.

The short $16 call on SNAP is one of them. The other positions are the short $15 call on THC and the short $16 call on AMC.

Hold these positions and if any adjustments are required, I will send a separate mail.

The other position that expires today are the long calls on APA. APA never moved back enough to get above the strike price, so it looks like this position will be a loss. Because there were a few trades around this position, this was not a total loss.

The S & P 500 closed at 2,562.10 yesterday, up .84 points on the day.

The range for the day was 14.44 points, so yesterday was actually an expansion. The Average True range is 9.68 points, so yesterday exceeded the ATR by 50%.

Our resistance levels kept you on the right side of the market yesterday.

The S & P 500 gapped down and proceeded to drop to a low of 2,547.92. This was just below the upside level of 2,548.85.

From the low, the market rallied and headed right back to the 2,558.60 level, closing just above it at 2,562.10.

Upside objective remains to the 2,578.10 level. And support from yesterday's daily bar is in the 2,555 to 2,558 area.

Pre open the market is trading to the upside about 6 points.

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 10.02. Once again closing under 10.16.

Yesterday's high came to 11.10, before dropping to close back under the 10.16 minor level.

9.38 could offer support. And resistance is at 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. And I would expect the minor 2,568.40 level to get hit today.

And 2,558.60 should also be a minor support level. 2,5678 could be minor resistance on the first run to that level.

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 5
Minor level: 135.94
Minor level: 132.81

The QQQ closed at 148.31. The 150 level should still be the objective.
Look for the QQQ to regain the 148.44 level.

The minor support is at 148.05. 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 149.29. 149.22 should be support.

150.78 could offer minor resistance. And the minor 148.83 level should offer 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 125.31. 125 should be support. A break under that level the TLT should head lower.

125.78 is minor resistance and 124.61 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 122.39. Watch the 121.88 level. A break under 121.88 and the GLD should head lower.

The next minor level is 121.09 A break under this levels implies a move lower.

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 67.64. The XLE broke udner the midband, which should now be resistance. That level is 67.74.

A close under 67.97 and the XLE should drop to 65.63.

67.19 is minor support. And 67.97 should be minor 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 85.37. 84.38 should now be the objective.

84.96 should offer minor support. 85.55 should offer minor resistance.

AAPL:

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

Apple gapped down and closed at 155.98, closing down 3.78 on the day. Look for Apple to bounce today.

157.81 should also be a resistance level. And 155.47 is minor support.

WATCH LIST:

Bullish Stocks: GOOGL, AMZN, BIIB, LMT, BIDU, BA, FDX, MMM, ALGN, RTN, FB, ASML, PANW, MA, URI, JNJ, CAT, RHT, CHKP, UTX, ADSK, V, KLAC

Bearish Stocks: ULTA, DIS, AAP, RL, KHC, WBA, TSCO, DXCM, GE, AOBC, CCJ, BBBY

Be sure to check earnings release dates