October 23, 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

SNAP Long at $15.20
Premium Collected - $1.20

AMC Long at $15.27
Premium Collected - $0.43

THC Long at $14.63
Premium Collected - $0.40

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All short call positions expired Friday. I will look to add more short positions this week. The long call position on APA also expired Friday.

The S & P 500 closed at 2,575.21 on Friday. This now puts the S & P 500 within 3 points of our objective of 2,578.10.

The range for Friday was only 7.88, but the market gapped up about 5 points at the open, so the move from Thursday's close to Friday's close was actually 13.11 points.

The range for the week was 27.52 points. This was not quite double the range for the previous week. I bring this up because you can usually expect an expansion after the market contracts. And that is what we saw.

Support from last week's weekly price bar is in the 2,562 to 2,565 area. And support from Friday's daily price bar is at 2,571.

Pre open, the S & P 500 is trading about 3 points to the upside. So, I expect the S & P 500 to open right around our objective.

What happens after 2,578.10 is taken out?

As I have been saying, I believe that 2,578.10 is a strong resistance level. Should he market take this level out, it is a clear indication that the market should continue higher.

It could go as high as 2,656.30. But, our confirming levels should help guide us to determine how high the market can go.

The upside confirming level after 2,578.10 is 2,587.88. This should also be a level to watch to see if profit taking sets in.

Earnings continue this week. We will hear from GOOGL on Thursday, along with BIDU and MSFT.

Tomorrow we will hear from CAT, MMM, and CMG.

Short term charts remain strongly bullish.

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 9.97. Friday's low was 9.29, but the VIX recovered and closed above the key 9.38 level.

A retest of 9.38 is likely. But the 9.38 level has been strong support.

Resistance is still at 10.16.

$SPX:

Minor level: 2,587.88 **
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

The objective is still to 2,578. Watch to see if the S & P 500 clears this level.

Short term support is at 2,570.80. 2,580 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 5
Minor level: 135.94
Minor level: 132.81

The QQQ closed at 148.71. The 150 level should still be the objective.
The QQQ did regain the 148.44 level.

The minor support is at 148.63. 149.61 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 149.98. Friday's high was 150.41, or 41 cents above the 150 level.

150.78 could offer minor resistance. And the minor 149.61 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 123.98. 123.44 should be the objective.

124.22 is minor resistance and 122.66 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 121.61. The 121.88 level should be resistance.

The next minor level is 121.10 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 67.77. The XLE continues to trade around the mid band on its daily chart. The mid band is 67.74.

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

67.58 is minor support. And 68.16 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 84.61. Friday's low was within 20 cents of the 84.38 objective.

83.98 should offer minor support. 84.96 should offer minor resistance.

AAPL:

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

Apple closed right on the 156.25 level. Watch this price level today. If Apple moves above it, it should be support. And the opposite would be true if it broke under it.

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

WATCH LIST:

Bullish Stocks: BIIB, BA, MMM, LRCX, NVDA, CMI, ADBE, FB, PANW, HON, BLUE, DE, CAT, ADSK, VRSN, KLAC, ALL

Bearish Stocks: AYI, TSRO, PZZA, MMP, ACIA, DXCM, NWL, BPL

Be sure to check earnings release dates.