October 25, 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 - $1.53
Short Oct 27th-$15.50 Call - ($0.30)

AMC Long at $15.27
Premium Collected - $0.43

THC Long at $14.63
Short Oct 27th-$15 call - ($0.40)
Premium Collected - $0.80

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Today's update will be short. With the S & P 500 hitting our objective, we now are at a point where the market should bounce around the main level of 2,578.10 until the next move is revealed.

We know the level that needs to be clear to move higher. Two closes above 2,587.88 and the S & P 500 should move higher.

Two closes below 2,558.60 and we should get a retest of the next lower level, which is 2,539.10.

2,569 is the support area from yesterday's daily price bar. This is a key level to watch for today.

The VIX continues to bounce, closing at 11.16. The 12.50 level should continue to act as resistance for the VIX.

If the VIX fails and reverses at 12.50, look for the market to continue higher.

Earnings continue. CMG should gap down this morning at the close.

Continue to follow the resistance levels.

Here are the Key Levels for the Markets:

$VIX:

Major level: 12.50
Minor level: 12.11
Minor level: 11.33
Major level: 10.94 <
Minor level: 10.55
Minor level: 10.16 **
Major level: 9.38 <
Minor level: 8.99
Minor level: 8.20
Major level: 7.81

The VIX closed at 11.16. 12.50 should be resistance. To move up to the 12.50 level, the VIX would need two closes above 11.33.

10.55 should be minor support.

$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

To move lower, the S & P 500 will need two closes under 2,558.60.

Minor support should be at 2,558.60. 2,587 could offer resistance.

Short term momentum still 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 147.99.

The minor support is at 147.66. 148.44 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 149.17. A close under 149.22 implies a drop to 146.88.

146.88 should offer support. And the minor 148.44 level should also 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 123.43. Look for 122.66 to offer support. If it can't I would expect the TLT to head lower.

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 121.33. To move lower, the GLD will need two closes under 121.10.

Resistance is at 121.88.

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 67.55. The XLE broke under the mid band on its daily chart. The mid band is 67.73. This should be resistance.

Look for support at 67.19. 67.77 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 84.36.

83.98 should offer minor support. 84.77 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 157.10, just above the 156.25 level. Still trying to hold this level.

Low risk trade buying against 156.25 with a tight stop.

158.38 should also be a resistance level. And 156.25 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.